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

question 242

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. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a monopoly. How much profit will Miguel and Maria each earn once they reach a Nash equilibrium?

• A)$40
• B)$36
• C)$32
• D)$30

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Definitions:

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly affecting daily life.

Manic Episodes

A period of abnormally elevated mood and high energy, often associated with bipolar disorder.

Significant Weight

A term often used to denote a weight that is of importance or consequence, possibly in a medical or personal fitness context.

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, leading to severe anxiety, flashbacks, and uncontrollable thoughts about the event.