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.

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Definitions:

Backlash

The play or slop between mating mechanical parts, such as gears, which is the result of gaps between parts.

Meshing Gears

The process where the teeth of two or more gears come into contact with each other in order to transmit power from one shaft to another.

Sliding Action

The movement or operation of a mechanism that involves two or more surfaces moving over each other with minimal resistance.

Mesh

Mesh describes the process of interlocking or the state of being interlocked, as in the case of gear teeth or the fine woven material used in screens.