Suppose that once a well is dug, water flows out of it continuously without any additional effort. Customers collect their water and pay a per gallon fee when they leave the site of the well. In the short run, the competitive firm in this market
A) will not shut down because variable costs are zero.
B) has no fixed costs.
C) faces diminishing marginal returns.
D) can act as a price setter.
A
Economics
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The long-run average-total-cost curve connects the lowest cost for each level of output given by the short-run average-total-cost curves
a. True b. False Indicate whether the statement is true or false
Economics
What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending. b. Decrease tax rates and decrease government spending. c. Decrease tax rates and increase government spending. d. Increase tax rates and decrease government spending.
Economics