A firm is best described as a natural monopoly if

Question

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A firm is best described as a natural monopoly if it can supply the entire market while minimizing its average costs. This means that it can produce the entire output for a given market at a lower cost than if there were multiple firms producing the same output. This is often due to high fixed costs or economies of scale, making it difficult for new firms to enter the market and compete effectively. Therefore, a natural monopoly typically has no competing firms in the market.

A Firm Is Best Described as a Natural Monopoly If