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

question 60

Multiple Choice

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

• A) $30
• B) $40
• C) $50
• D) $60

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Definitions:

Team Concept

Refers to the understanding and approach of working collaboratively with others towards a common goal.

Buy-in

Refers to the agreement and acceptance by stakeholders or team members on a particular plan or idea.

Accountability

The responsibility of individuals or organizations to report, explain, and be answerable for resulting consequences of their actions.

Group Member Roles

The specific functions or parts played by individuals within a group, influencing the group's dynamics and outcomes.