Why are water companies considered a natural monopoly?
What will be an ideal response?
Once one water company incurs the cost of establishing a physical connection to one customers' home or place of business, the marginal cost of providing service falls rapidly over time as more and more service is provided. For instance, once a main pipe is buried under a street, adding additional customers on the street is relatively chea
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List three characteristics of demand curves. Make sure to explain the shape of the curve and the meaning of the vertical and horizontal intercepts
What will be an ideal response?
The situation in which a person places greater value on a good as more and more people possess it is called the
A) Bandwagon Effect. B) Greater Value Effect. C) Snob Effect. D) Behavioral Effect.
A firm's cost of production is determined by all of the following except
A) the technology used to produce its output. B) the productivity of its workers. C) the cost of raw material used in production. D) the amount of corporate taxes it must pay on its profit.
Do the assumptions of the perfectly competitive model describe all real-world markets? Explain
What will be an ideal response?