Table 17-2 Imagine a Small Town in Which Only Two Residents, Abby

question 334

Multiple Choice

Table 17-2
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 17-2. Suppose that Abby and Brad work together to operate as a profit-maximizing monopolist. How many gallons of water will be produced and sold?

• A)4 gallons
• B)5 gallons
• C)6 gallons
• D)8 gallons

---

Definitions:

Avoidance Procedure

A behavioral training method where learning occurs through the avoidance of an unpleasant stimulus.

Aversive Stimulation

A psychological technique that uses unpleasant stimuli to reduce or eliminate undesirable behaviors.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the probability of that behavior being repeated.

Laughing

The action of making spontaneous sounds and movements of the face and body that are the instinctive expressions of lively amusement and sometimes also of contempt or derision.