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

question 21

Multiple Choice

Table 17-1
Imagine a small town in which only two residents, Matthew and Anna, own wells that produce water for safe drinking. Each Saturday, Matthew and Anna 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 Matthew and Anna 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 is reflected in the table.

-Refer to Table 17-1.As long as Matthew and Anna operate as a profit-maximizing monopoly,what will their weekly revenue equal

• A)$200
• B)$270
• C)$320
• D)$360

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Definitions:

Negative Reinforcers

Stimuli that, when removed after a behavior, increase the likelihood of that behavior being repeated in the future.

Generalization

The process of applying the outcome of a particular instance to a broader range of similar instances.

Cognitive Processes

Cognitive processes encompass the mental actions involved in acquiring, processing, and storing knowledge, including perception, memory, thought, and problem-solving.

Primary Reinforcers

Innate reinforcing stimuli that satisfy biological needs, such as food, water, and warmth, which are effective in shaping behavior.