Recall the Application About the British Experience with Private Water

question 29

Multiple Choice

Recall the application about the British experience with private water firms in the 19th century,what does the water privatization show in terms of the distribution of water?

• A)The water is a best managed when the government takes control.
• B)The water is a natural monopoly.
• C)The water distribution is optimized when the price is fixed.
• D)none of the above

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified time period.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Rationing Function

The ability of market prices to allocate scarce goods and services among competing demands.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar, leading to price-taking behavior.