Which of the Following Average Cost Functions Suggests the Presence

question 24

Multiple Choice

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

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

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Definitions:

Sclera

The white outer layer of the eyeball, serving as protection and providing attachment for the ocular muscles.

Protect

To keep safe from harm or injury; to guard or defend from danger or risk.

Maintain Shape

The ability of an object or material to preserve its configuration or form under stress or after manipulation.

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.