Table 17-5

question 152

Multiple Choice

Table 17-5.Imagine a small town in which only two residents,Bill and Ben,own wells that produce safe drinking water.Each week Bill and Ben 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.Assume Bill and Ben 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 are shown in the table below.

-Refer to Table 17-5.Since Bill and Ben operate as a profit-maximizing monopoly in the market for water,what price will they charge for water?

• A) $2
• B) $4
• C) $6
• D) $7

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Definitions:

Workers' Right

The collection of legal rights and entitlements related to employment, including fair wages, safe working conditions, and the ability to form labor unions.

Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and benefits.

Farming Cooperative

An agricultural organization owned and operated by a group of farmers who pool their resources to gain advantages in production, marketing, and purchasing.

Economic Situation

The state of the economy at a specific time, including factors like employment, GDP, inflation rates, and market health.