Which of the Following Total Cost Functions Suggests the Presence

question 90

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:

Generalization

A broader statement or principle derived from specific instances, making wider claims based on limited observations.

Generalization

A broad statement or concept derived from specific instances, often used to make predictions or assumptions about unobserved situations.

Plausible

Appearing likely or believable, though not necessarily true.

Method of Residues

A principle in problem-solving that identifies and subtracts known influences from a scenario to isolate unknown factors.