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

question 200

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. Suppose the town enacts new antitrust laws that prohibit Sydney and Matthew from operating as a monopoly. How many gallons of water will be produced and sold once Sydney and Matthew reach a Nash equilibrium?

• A)540
• B)630
• C)720
• D)810

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Definitions:

Electrophilic Aromatic Substitution

A reaction where an electrophile replaces a hydrogen atom in an aromatic ring, a common mechanism in aromatic chemistry.

Sigma Complex

An intermediate in certain chemical reactions characterized by a fully saturated carbon atom bonded to a metal center.

Generic Electrophile

A broadly defined electron-deficient species capable of forming new bonds by accepting a pair of electrons from a nucleophile.

Electrophilic Iodination

A chemical reaction involving the addition of iodine to a substrate via an electrophilic attack.