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.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when there are high fixed costs and relatively low variable costs, making it more efficient for a single firm to serve the market. Option B, TC = 100 + 2Q, reflects high fixed costs (100) and low variable costs (2Q), suggesting the presence of a natural monopoly.

Which of the Following Total Cost Functions Suggests the Presence