Early settlers in the town of Dry Gulch drilled wells to pump as much water as they wanted from the single aquifer beneath the town.(An aquifer is an underground body of water. ) As more people settled in Dry Gulch,the aquifer level fell and new wells had to be drilled deeper at higher cost.
Refer to the information given above.Each resident of Dry Gulch has a private incentive to ____ water because _____.
A) over use;external costs aren't considered
B) under use;it is a scarce resource
C) over use;it is a scarce resource
D) under use;it is characterized by increasing marginal costs
Correct Answer:
Verified
Q73: A resource that has common property rights
Q74: Early settlers in the town of Dry
Q75: This graph shows the marginal costs and
Q76: This graph shows the marginal costs and
Q77: Since the cost of obtaining more of
Q79: Early settlers in the town of Dry
Q80: According to the textbook,limits on private property
Q81: A village has five residents,each of
Q82: Brady owns a beachfront lot with a
Q83: In order to achieve a socially optimal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents