Which of the Following Total Cost Functions Suggests the Presence

question 5

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.

---

Definitions:

Weight-Reduction

The process of losing body weight, typically through diet, exercise, or a combination of both.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time; the lowest level at which an individual can experience a sensation.

Difference Threshold

The smallest change in sensation that can be perceived half the time by an individual, also referred to as the just noticeable difference (JND).

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision.