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A firm that is a natural monopoly Answer has very small fixed costs and very large marginal costs. can supply the entire market at a lower average total cost than two or more firms. cannot make an economic profit if it is not regulated because it must serve a very large customer base. produces the efficient quantity of output when it is not regulated. is infrequently regulated because having one firm serve the market is economically sound.

Macroeconomics, Economics

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