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 is characterized by high fixed costs and low marginal costs, which is represented by TC = 100 + 2Q, where 100 is a high fixed cost and 2Q represents low marginal costs.

Which of the Following Total Cost Functions Suggests the Presence