Table 17-30 Imagine a Small Town in Which Only Two Residents, Abby

question 329

Essay

Table 17-30
Imagine a small town in which only two residents, Abby and Brad, own wells that produce safe drinking water. Each week Abby and Brad work together to decide how many gallons of water to pump. They bring water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Abby and Brad can pump as much water as they want without cost so that the marginal cost is zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below:
-Refer to Table 17-30. Discuss the difference between the monopoly outcome and the Nash equilibrium.

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Definitions:

Fern

One of a phylum of seedless vascular plants that reproduce by

Sori

Clusters of sporangia, often found under fern leaves, where the spores are produced.

Ferns

A group of non-flowering vascular plants that reproduce via spores and have leaves typically referred to as fronds.

Fronds

The leaf-like parts of ferns and some other plants, often large and divided into sections.