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) has no variable costs.
B) has no fixed costs.
C) will shut down.
D) can produce water at no cost.
A
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The marginal cost to a student of missing a class meeting in Introductory Economics increases when
A) textbook prices increase. B) tuition rates increase. C) valuable information is communicated in the class meetings. D) any of the above occurs.
For which pair of firms would a merger be horizontal?
a. Avis Car Rentals and United Airlines b. Coca-Cola and Nike c. Barnes and Noble and Borders bookstores d. Dominos Sugar and Dominos Pizza e. Samuel Adams Beer and Samsonite Luggage
Price elasticities of supply are always:
A. the same as price elasticities of demand. B. negative numbers. C. positive numbers. D. greater than one.
When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.