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

question 242

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. How much profit will Miguel and Maria each earn once they reach a Nash equilibrium?

• A)$40
• B)$36
• C)$32
• D)$30

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Definitions:

Erotophilic

describes an individual with a positive attitude towards sexuality and sexual activity.

Contraception

A rephrased definition: The use of various devices, drugs, or surgical procedures to prevent pregnancy.

Erotophilic

Referring to an attitude toward sexual activity that is positive, embracing sexual pleasure and diversity of sexual expressions.

Sexual Fantasies

Imaginative thoughts or mental images about sexual activity that can intensify sexual desire and arousal.