Table 17-1 Imagine a Small Town in Which Only Two Residents, Rochelle

question 185

Multiple Choice

Table 17-1
Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule for water is shown in the table below:
-Refer to Table 17-1. If this market for water were perfectly competitive instead of monopolistic, what price would be charged?

• A)$0
• B)$30
• C)$40
• D)$60

---

Definitions:

Retrograde Amnesia

A loss of memory-access to events that occurred or information that was learned before an injury or the onset of a disease.

Repressed Memories

Memories involuntarily hidden from conscious awareness due to their association with significant stress or trauma.

Hypnosis

A trance-like state of focused attention and increased suggestibility, with diminished peripheral awareness, often used for therapeutic purposes.

False Memories

Fabricated or distorted recollections of events that did not actually occur, often studied in psychology and memory research.