Business, 06.05.2020 08:31 kiridis03

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

A. TC = 50Q
B. TC = 50 + 20Q
C. TC = 50 + 20Upper Q squared
D. All of the above functions suggest the presence of a natural monopoly.
E. None of the above functions suggest the presence of a natural monopoly.

Answers: 3

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Answers

In a particular market, a monopoly firm occurs if a single firm can serve that market at a cheaper price than any combination of more than two firms.

A "cost function" is a function between input costs and output amount whose value is the cost of producing that product given those input costs. It would be frequently used by companies to reduce costs and maximize production efficiency through the use of the cost curve.Since a natural monopoly is a monopoly firm that has a high fixed cost or startup cost for running a business over time. As result, $\bold{TC= 50 +20Q}$ , showing a greater amount of total cost.

Therefore, the final answer is "Option B".

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Answer from: itzia00

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.

Answer from: Quest

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

Answer from: Quest

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

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