Table 17-6 Imagine a Small Town in Which Only Two Residents, Kunal

question 221

Multiple Choice

Table 17-6
Imagine a small town in which only two residents, Kunal and Naj, own wells that produce safe drinking water. Each week Kunal and Naj work together to decide how many gallons of water to pump, to bring the water to town, and to sell it at whatever price the market will bear. Assume Kunal and Naj can pump as much water as they want without cost so that the marginal cost of water equals zero.
The weekly town demand schedule and total revenue schedule for water are shown in the table below.
-Refer to Table 17-6. If the market for water were perfectly competitive instead of monopolistic, how many gallons of water would be produced and sold?

• A)25
• B)100
• C)200
• D)300

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Definitions:

Locomotion

Is the ability to move from one place to another, which can involve walking, running, swimming, or other forms of physical movements.

Secondary Circular Reactions

The stage in Piaget's theory of cognitive development, occurring from about 4 to 8 months, where infants repeat actions that produce effects on the environment, showing early intentionality.

Goal

A desired result or outcome that an individual or system aims to achieve through a process of planning and effort.

Environment

The surrounding conditions and factors that affect living organisms, including natural elements and human-made influences.