Table 17-1
Imagine a Small Town in Which Only Two

question 45

Multiple Choice

Table 17-1
Imagine a small town in which only two residents, Sydney and Matthew, own wells that produce safe drinking water. Each week Sydney and Matthew work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Sydney and Matthew can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule for water is shown in the following table:
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$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Gallons) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per gallon) }\end{array} & \begin{array} { c } \text { Total Revenue and Total Profit } \\\text { (Dollars) }\end{array} \\\hline 0 & 48 & 0 \\\hline 90 & 44 & 3,960 \\\hline 180 & 40 & 7,200 \\\hline 270 & 36 & 9,720 \\\hline 360 & 32 & 11,520 \\\hline 450 & 28 & 12,600 \\\hline 540 & 24 & 12,960 \\\hline 630 & 20 & 12,600 \\\hline 720 & 16 & 11,520 \\\hline 810 & 12 & 9,720 \\\hline 900 & 8 & 7,200 \\\hline 990 & 4 & 3,960 \\\hline 1,080 & 0 & 0 \\\hline\end{array}$$ ​
-Refer to Table 17-1. If Sydney and Matthew operate as a profit-maximizing monopoly in the market for water, what price will they charge?

• A)$28
• B)$24
• C)$20
• D)$32

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Definitions:

Coronoid Process

The coronoid process is a triangular eminence projecting from the upper and frontal part of the ulna bone in the forearm, serving as an attachment for muscle.

Frontal Suture

A fibrous joint that divides the two halves of the frontal bone of the skull in infants and young children, which typically fuses around two years of age.

Osseous Tissue

A specialized form of connective tissue that forms the structural elements of bones.

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers that provides strength and elasticity to structures.