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.
Question 2
In perfect competition, environmental externalities need not distort the allocation of resources providing
a. transactions costs are zero.
b. average costs are constant for all output levels.
c. firms install pollution control equipment.
d. the government sets realistic pollution standards.
Field Spaniel
Martian tripod illustration from the 1906 French edition of The War of the Worlds by H.G. Wells.
Zeeman Splitting by a Sunspot’s Magnetic Field
Sterile field instructions
Oil and Natural Gas Production from More Wells in Smaller Areas
Jean Piaget influenced the field of developmental science more than any other individual.