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.
Gravity field of the Moon
The same star field photographed with (a) a ground-based telescope, which is subject to poor seeing
Possible Sources of Differences in Output per Worker
Eye Fact Poster
Field technician in Utah
. Calculate the net electric field at point B