In a natural monopoly, average total cost is less than marginal cost throughout the entire range of the market demand.

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In a natural monopoly, average total cost decreases as the quantity of output increases due to economies of scale, typically making it more efficient for a single firm to serve the entire market. Marginal cost can be less than or equal to average total cost, but not consistently higher across the entire range of market demand.

In a Natural Monopoly, Average Total Cost Is Less Than