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

question 36

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. The socially efficient level of water supplied to the market would be

• A)50 gallons.
• B)150 gallons.
• C)225 gallons.
• D)300 gallons.

---

Definitions:

Cultural Background

The cultural environment in which a person was raised or identifies with, including beliefs, customs, languages, and experiences.

Somatic Complaints

Physical symptoms that may not have a discernible physical cause, often believed to be linked to psychological factors, including pain, fatigue, and discomfort.

Negative Way

A term not specific to a field; generally refers to a manner or approach that is not constructive or beneficial.

Irrational Thoughts

Thoughts that are not based on reality or logical reasoning, often negative and self-defeating.