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

question 347

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. Suppose the town enacts new antitrust laws that prohibit Kunal and Naj from operating as a monopolist. What will the new price of water be once the Nash equilibrium is reached?

• A)$3
• B)$4
• C)$5
• D)$6

Explain the concept of telegraphic speech and its role in early language development.

Understand the critical and sensitive periods in language development and their significance.

Recognize fast mapping as a mechanism in vocabulary acquisition.

Analyze the role of receptive and productive vocabulary in language development.

---

Definitions:

Total Cost

The overall costs spent in the generation of goods or services, encapsulating both non-variable and variable expenses.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Profit-Maximizing Price

The price level at which a company can sell its product or service to achieve the highest possible profit, taking into account the cost of production and market demand.

Average Total Cost

The total cost of production divided by the number of units produced, often used to identify the most efficient scale of production.