Suppose that once a well is dug, water flows out of it continuously wi

Suppose that once a well is dug, water flows out of it continuously without any additional effort. Customers collect their water and pay a per gallon fee when they leave the site of the well. In the short run, the competitive firm in this market

A) has no variable costs.
B) has no fixed costs.
C) will shut down.
D) can produce water at no cost.

ANSWER

A