Table 17-3 Imagine a Small Town in a Remote Area Where Only

question 327

Multiple Choice

Table 17-3
Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that produce milk that is safe to drink. Each week Maria and Miguel work together to decide how many gallons of milk to produce. They bring milk to town and sell it at whatever price the market will bear. To keep things simple, suppose that Maria and Miguel can produce as much milk as they want without cost so that the marginal cost is zero. The weekly town demand schedule and total revenue schedule for milk is shown in the table below:
-Refer to Table 17-3. If this market for milk were perfectly competitive instead of monopolistic, how many gallons of milk would be produced and sold?

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

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Definitions:

Stereotyping

Making generalized assumptions about individuals or groups based on perceived characteristics, often leading to prejudiced attitudes or actions.

Social Identity

The part of an individual’s self-concept derived from their perceived membership in social groups, shaping their behavior and attitudes.

Internal Attribution

The process of explaining one's own behavior or the behavior of others based on internal characteristics such as personality, disposition, or intention.

Internal Attribution

The explanation of an individual's behavior as being caused by internal characteristics such as personality, disposition, or attitudes.