Table 17-8 For a Certain Small Town, the Table Shows the Demand

question 410

Multiple Choice

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there are two suppliers of water, Victor and Sami, and if they have successfully formed a cartel, then what would be the price and the market quantity?

• A)The price would be $7 per bottle and the market quantity would be 600 bottles.
• B)The price would be $6 per bottle and the market quantity would be 800 bottles.
• C)The price would be $5 per bottle and the market quantity would be 1000 bottles.
• D)The price would be $4 per bottle and the market quantity would be 1200 bottles.

---

Definitions:

Absolute Advantage

A condition where a country, individual, or company can produce a good or service at a lower cost in terms of labor and resources than competitors.

Comparative Advantage

An economic theory stating that in order to gain from trade, countries should specialize in producing goods for which they have a lower opportunity cost.

Computers

Electronic devices capable of processing, storing, and retrieving data, widely used for work, education, and entertainment.

Roses

Flowering plants known for their beauty and fragrance, often cultivated for decorative purposes and their symbolic significance in various cultures.