A Monopolist's TC Function and MC Functions Are as Follows

question 33

Multiple Choice

A monopolist's TC function and MC functions are as follows: TC = 20 + 4Q and MC = 4. This monopolist can be said to have which of the following characteristics?

• A) It must be producing at the socially optimal level of output.
• B) It is a natural monopoly.
• C) The marginal cost curve rises at an increasing rate.
• D) It is one of two firms in the industry.

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