In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that
a. existing wells have negatively sloped marginal cost curves.
b. existing wells and new wells are owned by different people.
c. existing wells and new wells are owned by the same people.
d. there is a discrepancy between private and social marginal costs.
d
Economics
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The Herfindahl index would be 5000 if the only two firms in an industry have equal market shares
a. True b. False
Economics
The demand for a good is elastic. Which of the following would be the most likely explanation for this?
A. The time interval considered is short. B. The good is a necessity. C. The good is broadly defined. D. The good costs a large portion of one's total income.
Economics