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

question 115

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) will not shut down because variable costs are zero.
• B) has no fixed costs.
• C) faces diminishing marginal returns.
• D) can act as a price setter.

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Definitions:

Within-Subjects Design

A research design in which the same group of subjects is exposed to each condition or treatment.

Treatment Conditions

Specific situations or environments created within an experiment in which participants are exposed to a particular variable or intervention being tested.

Dependent Variables

The variables in an experiment that are expected to change as a result of manipulations to the independent variable.

Pretest-Posttest Control

A research design that measures participants before and after an intervention, comparing to a control group not receiving the intervention.