Table 16-4 Imagine a Small Town in Which Only Two Residents, Tony

question 149

Multiple Choice

Table 16-4
Imagine a small town in which only two residents, Tony and Jill, own wells that produce safe drinking water. Each week Tony and Jill work together to decide how many gallons of water to pump, to bring the water to town, and to sell it at whatever price the market will bear. To keep things simple, suppose that Tony and Jill can pump as much water as they want without cost so that the marginal cost of water equals zero.
The weekly town demand schedule and total revenue schedule for water is shown in the table below.

-Refer to Table 16-4.If the market for water were perfectly competitive instead of monopolistic,how many gallons of water would be produced and sold?

• A)70
• B)90
• C)110
• D)120

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Definitions:

Individual Differences

Variations among people in their physical attributes, intelligence, talents, personalities, and behaviors.

Creatively

The ability to generate novel and valuable ideas or solutions.

Content Theories

Theories in psychology and management that focus on understanding what motivates individuals, identifying specific factors that contribute to motivation such as needs, desires, and goals.

Goal-Setting Theory

A motivational theory that emphasizes the setting of specific, measurable, achievable, relevant, and time-bound (SMART) goals to enhance performance.