Suppose That Once a Well Is Dug,water Flows Out of It

question 88

Multiple Choice

Suppose that once a well is dug,water flows out of it continuously without any additional effort.Customers collect their water and pay a per gallon fee when they leave the site of the well.In the short run,the competitive firm in this market

• A) has no variable costs.
• B) has no fixed costs.
• C) will shut down.
• D) can produce water at no cost.