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

question 81

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. How many gallons of water will be produced and sold once Rochelle and Alec reach a Nash equilibrium?

• A)600
• B)700
• C)800
• D)900

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Definitions:

Subordinate Motivation

Subordinate motivation refers to the driving forces that influence the willingness and energy of employees to follow and actively support their leaders or managers.

Work Setting

The physical and social environment in which people perform their jobs, including the workplace layout, culture, and dynamics.

Expectancy Theory of Motivation

A psychological theory suggesting that individuals are motivated to act in certain ways based on the expected results of their actions.

Designated Goals

Clearly defined objectives that have been specifically appointed or marked for achievement by a person or a group.