For a natural monopoly to cover its total cost,its price must equal its

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In a natural monopoly, the firm has high fixed costs but very low marginal costs. Therefore, to cover its total cost, it needs to set its price equal to its average total cost. This allows the firm to make some profit and continue operating in the long run. This is because if the firm sets its price below its average total cost, it will be unable to cover its fixed costs and will eventually go bankrupt. If it sets its price above its average total cost, it will be charging too much and will face less demand, leading to lower revenues and profits.

For a Natural Monopoly to Cover Its Total Cost,its Price