Table 17-3 Imagine a Small Town in a Remote Area Where Only

question 457

Multiple Choice

Table 17-3
Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that produce milk that is safe to drink. Each week Maria and Miguel work together to decide how many gallons of milk to produce. They bring milk to town and sell it at whatever price the market will bear. To keep things simple, suppose that Maria and Miguel can produce as much milk as they want without cost so that the marginal cost is zero. The weekly town demand schedule and total revenue schedule for milk is shown in the table below:
-Refer to Table 17-3. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a monopoly. What will be the price of milk once Maria and Miguel reach a Nash equilibrium?

• A)$14
• B)$12
• C)$10
• D)$8

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Definitions:

Denisovan Genes

Genetic material derived from an extinct species of human, Denisovans, showing interbreeding effects in modern humans, especially in Asia.

Neanderthal Genes

Genetic sequences inherited from Neanderthals, present in the DNA of modern humans outside Africa.

Genetic Markers

Genetic markers are sequences of DNA that can be used to identify individuals or species, and are often employed in genetic mapping, forensic analysis, and study of genetic predispositions to diseases.

Australopiths

Refers to a group of extinct hominins closely related to humans, known for their bipedal locomotion and significant role in human evolution.