The total cost curve for firms in a natural monopoly is estimated to be TC = 2Q3 – 100Q² + 10000Q The government has a desired industry output of 100. What is the minimum efficient scale in this industry? O 5% O 10% O 12.5% O 25%

The total cost curve for firms in a natural monopoly is estimated to be TC = 2Q3 – 100Q² + 10000Q The government has a desired industry output of 100. What is the minimum efficient scale in this industry? O 5% O 10% O 12.5% O 25%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6. The total cost curve for firms in a natural monopoly is estimated to be:
TC = 2Q3 – 100Q² + 10000Q
The government has a desired industry output of 100. What is the minimum efficient scale in this industry?
O 5%
O 10%
O 12.5%
O 25%
O 50%

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