Which of the Following Total Cost Functions Suggests the Presence

question 34

Multiple Choice

Which of the following total cost functions suggests the presence of a natural monopoly?

• A)TC = 2Q
• B)TC = 100 + 2Q
• C)TC = 100 + 2Q²
• D)All of the above.

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Definitions:

Statement of Owner's Equity

A financial statement that shows changes in the equity of a company over a given period, including investments, withdrawals, and profit or loss.

Sales Journal

A specialized accounting journal that records the company's sales transactions, typically on credit.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.