According to the Information Provided, Suppose Only One Resident Owns

question 184

Multiple Choice

According to the information provided, suppose only one resident owns all the wells in town.Which of the following statements is most likely going to be true of the market for water?

• A)the seller will be able to earn unlimited profit
• B)the price of a gallon of water will be driven to equal its marginal cost
• C)the price of a gallon of water will exceed its marginal cost
• D)since water is a necessity of life, there will be no decline in the quantity of water consumed, regardless of how high the price is raised

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