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

question 115

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, what would be the price for milk?

• A)$0
• B)$10
• C)$12
• D)$16

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Definitions:

Absorption

The process by which substances are taken up or assimilated into the body or into cells.

Disease Transmission

The process by which infectious diseases spread from one individual to another, through direct contact, vectors, or environmental means.

Inhalation

The act of breathing in; the intake of air or other substances into the lungs.

Ingestion

The process of taking food, drink, or another substance into the body through the mouth.