Table 17-10
Imagine a Small Town in Which Only Two

question 185

Essay

Table 17-10
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:
$\begin{array}{|l|l|l|}\hline \begin{array}{l}\text { Quantity } \\\text { (in gallons) }\end{array} & \text { Price } & \begin{array}{l}\text { Total Revenue } \\\text { (and Total Profit) }\end{array} \\\hline 0 & \$ 12 & \$ 0 \\\hline 1 & \$ 11 & \$ 11 \\\hline 2 & \$ 10 & \$ 20 \\\hline 3 & \$ 9 & \$ 27 \\\hline 4 & \$ 8 & \$ 32 \\\hline 5 & \$ 7 & \$ 35 \\\hline 6 & \$ 6 & \$ 36 \\\hline 7 & \$ 5 & \$ 35 \\\hline 8 & \$ 4 & \$ 32 \\\hline 9 & \$ 3 & \$ 27 \\\hline 10 & \$ 2 & \$ 20 \\\hline 11 & \$ 1 & \$ 11 \\\hline 12 & \$ 0 & \$ 0 \\\hline\end{array}$

-Refer to Table 17-10. Discuss the difference between the monopoly outcome and the Nash equilibrium.

Recognize the significance of timeliness and specificity in appreciation and thank-you messages.

Identify the deductive and inductive sequence in organizing business messages.

Distinguish between persuasive and routine claims and their tone of communication.

Comprehend the practices for effective good-news and neutral-news messages.

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Definitions:

Phonemes

The smallest unit of sound in a language that can distinguish one word from another.

Linguistic Heuristics

Cognitive shortcuts used in language processing and understanding, often applied for quick decision making or problem solving.

Morphemes

Tiny grammatical elements within a language that bear significance.

Phonemes

Fundamental sound units within a language that help to distinguish different words.