Which of the Following Total Cost Functions Suggests the Presence

question 58

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 +
• D) All of the above.

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Definitions:

Niche Market

A small market segment that consists of customers with specific needs and requirements.

Segment

A portion or part of something that is separated or distinct from the whole, often used in reference to markets or data.

Specific Needs

Particular requirements or conditions needed by an individual or group for their well-being or to achieve certain outcomes.

Lack of Access

The unavailability or inability to obtain necessary resources, services, or opportunities, often due to economic, social, or geographical barriers.