In Drilling a New Oil Well in an Existing Oil

question 31

Multiple Choice

In drilling a new oil well in an existing oil field,the fact that output on existing wells is reduced means that

• A)existing wells have negatively sloped marginal cost curves.
• B)existing wells and new wells are owned by different people.
• C)existing wells and new wells are owned by the same people.
• D)there is a discrepancy between private and social marginal costs.

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Definitions:

Durkheim's Contribution

Refers to the foundational contributions by Emile Durkheim to sociology, particularly his insights on social cohesion, the division of labor, religion, and his concept of anomie.

Social Basis

The underlying foundation or support for particular societal norms, behaviors, institutions, or structures within a community or society.

Human Behavior

Actions, reactions, and interactions of humans influenced by social, psychological, and biological factors.

Capitalism

An economic system characterized by private or corporate ownership of goods and the means to produce them, and operates for profit.