When water cannot be traded among current and potential users, then
a. each user will take more care to conserve, because added water cannot be obtained.
b. users have a strong incentive to conserve because they are now protected from price increases imposed by greedy entrepreneurs.
c. efficiency improves, as dry years can be better anticipated and planned for, and every user knows the quantity that will be available.
d. water will not flow to its highest valued uses, and some users will use water for relatively low-valued uses, because they cannot gain by selling it to others.
D
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The firm becomes the dominant organization type whenever
a. markets exist b. markets don't exist c. the net value of centralized, organized production exceeds the net value of market-arranged production d. the net value of market-arranged production exceeds the net value of centralized, organized production e. private enterprise eliminates shirking
Happy Bagels sells its bagels for $6 each and the firm has a constant marginal cost of $4 per bagel, which is equal to its (constant) average total cost. If Happy Bagels does not sell a bagel the day it is produced, the bagel is sold as day-old for $2. If Happy Bagels is currently holding 50 bagels in inventory and the probability that Happy Bagels will sell 50 bagels or more is 0.50, which of
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