Answer:
d. the supply of water is grater than the supply of diamonds
Explanation:
Adam Smith in this passage is illustrating the fact that the price of goods is not linked to how useful they are, but to their scarcity. Water (at least in 1776) was very abundant, and diamonds were very rare. The relative scarcity of these goods is what determines ultimately their market prices
<span>Public goods are goods which are non-excludable (no one can be denied from using it) and non-rival (use by one wouldn't affect the consumption by another).
Because of this, people want to use the good but not pay for it as they know, once the good is provided, they can't be excluded from using it. This is called Free riding.
Private companies will not be able to tackle the problem of free riding as they won't know what rate to charge and how to make everyone pay.
Govt. can, however do this easily.</span>
The price elasticity of demand measures by what percent the quantity demanded will change following a 1% price increase.
<h3>What is the price elasticity of demand?</h3>
The price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
For example if price increases by 10% and quantity demanded decreases by 20%, the price elasticity of demand would be 2.
To learn more about price elasticity of demand, please check: brainly.com/question/18850846
Answer:
The smaller factory will face diminishing returns first.
Explanation:
The smaller factory will most likely have fewer resources as compared to the larger one. The amount of capital will also be comparatively lower. It will also be producing a lower output.
So, when the number of workers in both the factories has increased the workers in the smaller factory will need to operate with less capital. So, they are likely to face diminishing returns first.
<span>The marginal product of the previous coach would have been negative because the removal of the last coach improved the performance of the runners which had decreased owing to negative marginal product of the coach.</span>