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

question 186

Multiple Choice

Table 17-1
Imagine a small town in which only two residents,Abby and Brad,own wells that produce safe drinking water.Each week Abby and Brad work together to decide how many gallons of water to pump.They bring water to town and sell it at whatever price the market will bear.To keep things simple,suppose that Abby and Brad can pump as much water as they want without cost so that the marginal cost is zero.The weekly town 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,how many gallons of water would be produced and sold?

• A) 12 gallons
• B) 8 gallons
• C) 6 gallons
• D) 0 gallons

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Definitions:

Product

The result of multiplying two or more numbers together.

Inequality

A relation that holds between two values when they are different, represented by symbols that show if one value is less than, greater than, or not equal to another value.

Real Number Line

A line that represents all real numbers in a continuous sequence, with positive numbers to the right of zero and negative numbers to the left.

Real Line

A one-dimensional space consisting of all the real numbers, visualized as a straight line where each point corresponds to a unique real number.