The Arkell Spring Grounds Is a High Yielding Bedrock Aquifer

question 100

Multiple Choice

The Arkell Spring Grounds is a high yielding bedrock aquifer that produces numerous fresh water springs along the Eramosa River northeast of the village of Arkell.Any farmer with land above the aquifer can at present pump water out of it.Using economic terms,what is the aquifer

• A)The aquifer is a public good that must be publicly owned to be used efficiently.
• B)The aquifer is a private good that must be privately owned to be used efficiently.
• C)The aquifer is a common property resource that will be overused if nobody owns it.
• D)The aquifer is a club good that should be left as it is.

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Definitions:

Variable Cost

Costs that change with the level of production or business activity, such as materials and labor.

Quantity of Output

Refers to the total amount of goods or services produced by a firm or an economy within a specific time period.

Total Cost

The overall expenditure associated with the creation of goods or provision of services, comprising both certain and variable costs.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.