When a firm has decreasing average costs over the entire range of market demand it is

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When a firm has decreasing average costs over the entire range of market demand, it is a natural monopoly. This is because the firm's cost advantage makes it more efficient and cheaper to produce than any potential competitors, allowing it to dominate the market and set prices. As a result, the market cannot support more than one firm, creating a natural monopoly.

When a Firm Has Decreasing Average Costs Over the Entire