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

question 87

Multiple Choice

Table 17-1
Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec 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 Rochelle and Alec 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 table below:
-Refer to Table 17-1. Suppose the town enacts new antitrust laws that prohibit Rochelle and Alec from operating as a monopoly. What will be the price of water once Rochelle and Alec reach a Nash equilibrium?

• A)$15
• B)$20
• C)$25
• D)$30

---

Definitions:

Central Carbon

The carbon atom in an organic molecule that is bonded to four different groups, making it a chiral or stereo center.

Heat Of Hydrogenation

The heat released during the hydrogenation process, which involves adding hydrogen to an organic compound, typically to convert unsaturated bonds to saturated ones.

Compound

A concoction formed through the chemical union of two or more elements in determined proportions.

Energy π MO

Refers to molecular orbitals formed by the overlap of pi orbitals, affecting molecular stability and reactivity, particularly in conjugated systems.