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Ray Of Light [21]
3 years ago
15

Which of the following total cost functions suggests the presence of a natural​ monopoly?

Business
1 answer:
monitta3 years ago
8 0

Answer: B. TC​ = 50​ + 20Q

Explanation:

A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.

Some examples include, gas pipelines, electricity grids, and the like.

They act as both a deterrent for companies to join the market as well as to exit.

Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.

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2. unchanged       increases             decreases

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4. unchanged       increases             decreases

5. increases         unchanged         increases

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export would comprise of goods and services produced in the US that are been sold to foreign countries

Import would comprise of foreign produced goods and services that are been sold in the US

Net export would increase when export occurs and decrease when import occurs

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