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.

---

Definitions:

Differentiation

The process of distinguishing a product, service, or business in the market through unique features, benefits, or attributes, making it stand out from competitors.

Integration

in the context of organizations, refers to the process of ensuring that various departments and functions work together seamlessly and efficiently.

Human Responsibility

Human responsibility refers to the obligation of individuals to act ethically and make decisions that consider the well-being of others and the environment, recognizing the impact of one's actions on society and the world.

Collectivism

A social or cultural orientation that emphasizes the group over the individual, prioritizing group goals over personal goals.