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

question 444

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 weekly town demand schedule and total revenue schedule for water is shown in the table below:
21.
-Refer to Table 17-1. If Rochelle and Alec operate as a profit-maximizing monopoly in the market for water, how much profit will each of them earn?

• A) $8,750
• B) $9,000
• C) $12,000
• D) $18,000

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Definitions:

Agreeableness

A personality trait that reflects the extent of a person's warmth and kindness towards others.

Empirically Validated

Confirmed or supported by observational and experimental evidence.

Superego

A component of Freud's psychoanalytic theory, representing the moral conscience and the internalization of societal norms and principles.

Unconscious

The part of the mind that is inaccessible to conscious thought but that affects behavior and emotions, according to psychoanalytic theory.