Table 16-3
Imagine a Small Town in Which Only Two

question 143

Multiple Choice

Table 16-3
Imagine a small town in which only two residents, Robert and John, own wells that produce water for safe drinking.Each Saturday, Robert and John work together to decide how many litres of water to pump, bring the water to town, and sell it at whatever price the market will bear.To keep things simple, suppose that Robert and John can pump as much water as they want without cost; therefore, the marginal cost of water equals zero.The weekly town demand schedule and total revenue schedule for water are shown in the table. $\begin{array}{|c|c|c|}\hline \text { Weekly quantity (in litres) } & \text { Price (\$) per litre } & \begin{array}{c}\text { Weekly total revenue (and } \\\text { total profit) (\$) }\end{array} \\\hline 0 & 12 & \$ 0 \\\hline 5 & 11 & 55 \\\hline 10 & 10 & 100 \\\hline 15 & 9 & 135 \\\hline 20 & 8 & 160 \\\hline 25 & 7 & 175 \\\hline 30 & 6 & 180 \\\hline 35 & 5 & 175 \\\hline 40 & 4 & 160 \\\hline 45 & 3 & 135 \\\hline 50 & 2 & 100 \\\hline 55 & 1 & 55 \\\hline 60 & 0 & 0 \\\hline\end{array}$
-Refer to Table 16-3.The socially efficient level of water supplied to the market would be:

• A)15 litres
• B)30 litres
• C)45 litres
• D)60 litres

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Definitions:

Inspiratory Reserve Volume

The additional air that can be forcibly inhaled after the inspiration of a normal tidal volume, reflecting lung capacity.

Expiratory Reserve Volume

The additional amount of air that can be forcibly exhaled after the completion of a normal, quiet expiration.

Single Breath

A process of inhaling once then exhaling, often used in respiratory testing to assess lung function and capacity.

Oxygen

A chemical element essential for life, necessary for cellular respiration in most organisms, and a major component of Earth's atmosphere.