In 1985 a desert community stopped pumping water from a 1000 foot well because it had run dry. In 2005 the price of water doubled. The community then drilled the well deeper and started pumping again. In this community,
A. water production is characterized by increasing opportunity costs.
B. markets cannot reach equilibrium because there is a persistent shortage of water.
C. the supply of water is perfectly inelastic because it is a finite resource.
D. higher water prices can reduce quantity demanded but cannot increase quantity supplied.
Answer: A
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Kenya owns a lawn mowing company. His total product schedule is in the above table. When 4 workers are employed, the average product is ________ lawns mowed per week
A) 80 B) 25 C) 20 D) 5 E) 320
Which of the following would be associated with the early phase of the product cycle?
A) Large amounts of production in low-income, developing countries B) A standardized product with an assembly-line style production process C) Sophisticated marketing and customer feedback mechanisms D) More consumption in low-income, developing countries