When residential water users are charged a flat monthly rate for water, the marginal cost of an extra thousand gallons of water to a household is zero
a. True
b. False
A
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Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was captured by its customers, not the railroad industrialists
Other researchers like Gabriel Kolko (1965) highlight the involvement of railroad industrialists in capturing this government agency to serve a cartel role, too. Indicate whether the statement is true or false
Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. The market for oranges is perfectly competitive and Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. At a quantity of 500,000 oranges, juice distributors will pay $0.05 per ounce of orange juice and
fragrance companies will pay $0.10 per orange peel. At the quantity of 500,000 oranges, what is the market equilibrium price of an orange? A) $0.05 B) $0.20 C) $0.15 D) $0.10
The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as
a. wage lag effect. b. wage stickiness. c. compensation inflexibility. d. inertia. e. reservation wage effect.
Which of the following is not correct?
a. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth. b. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so. c. The U.S. debt per-person is large compared with average lifetime income. d. Current spending may benefit future generations.