Why are water companies considered a natural monopoly?
What will be an ideal response?
Once one water company incurs the cost of establishing a physical connection to one customers' home or place of business, the marginal cost of providing service falls rapidly over time as more and more service is provided. For instance, once a main pipe is buried under a street, adding additional customers on the street is relatively chea
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In a closed economy, public saving is the amount of
a. income that households have left after paying for taxes and consumption. b. income that businesses have left after paying for the factors of production. c. tax revenue that the government has left after paying for its spending. d. spending that the government undertakes in excess of the taxes it collects.
When saving is less than planned investment in the aggregate expenditures model of a private closed economy then:
A. Real GDP will decrease B. The rate of interest will decline C. There will be a decline in the price level D. There will be a rise in real GDP