Anything that has alternative uses has an opportunity cost and is, therefore, scarce.

In theory the market's willingness-to-pay (WTP) should be equal to the market's willingness-to-accept (WTA). In other words, if you are willing-to-pay $1 for an incremental improvement in tap water quality, then you should be willing-to-accept $1 for an incremental decrease in tap water quality. In practice, however, the two are often estimated to be unequal. Which of the following helps to explain this disparity?

a. the WTA/WTP disparity b. the endowment effect c. benefit transfer d. value of statistical life e. cost-benefit analysis f. expected value g. risk and uncertainty h. None of the above.

Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run

Indicate whether the statement is true or false