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

question 151

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. As long as Kunal and Naj operate as a profit-maximizing monopoly, what will their combined weekly revenue amount to?

• A)$450
• B)$675
• C)$875
• D)$900

---

Definitions:

Situational Ethnicity

An ethnic identity that can be either displayed or concealed depending on its usefulness in a given situation.

Cost-benefit Analysis

An evaluation process that compares the costs and benefits of a decision, action, or policy to determine its feasibility or profitability.

Display

The act of showing or presenting something, often for the purpose of communication or exhibition.

Dominant Group

A social group that possesses the majority of wealth, power, and status in a society, often setting norms and values.