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

question 499

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 town's weekly demand schedule and total revenue schedule for water is shown in the table below:
-Refer to Table 17-1. If Rochelle and Alec operate as a profit-maximizing monopoly in the market for water, how many gallons of water will be produced and sold?

• A)0
• B)500
• C)600
• D)1,200

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Definitions:

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, responsible for detecting the five types of taste: sweet, sour, salty, bitter, and umami.

Vallate Papillae

Large, dome-shaped taste buds located at the back of the tongue, involved in the sensation of taste.

Secondary Olfactory

Refers to the brain's processing and perception areas for smells received from the primary olfactory receptors, involved in complex processes such as memory and emotions.

Olfactory Neurons

Specialized sensory cells located in the nasal cavity responsible for detecting and transmitting smells to the brain.