Table 17-8 For a Certain Small Town, the Table Shows the Demand

question 410

Multiple Choice

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there are two suppliers of water, Victor and Sami, and if they have successfully formed a cartel, then what would be the price and the market quantity?

• A)The price would be $7 per bottle and the market quantity would be 600 bottles.
• B)The price would be $6 per bottle and the market quantity would be 800 bottles.
• C)The price would be $5 per bottle and the market quantity would be 1000 bottles.
• D)The price would be $4 per bottle and the market quantity would be 1200 bottles.

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Definitions:

Damages

Financial compensation awarded to a party in a lawsuit for loss or injury caused by the actions of another.

Plaintiff

The party who initiates a lawsuit or legal action against another party (the defendant) in a court of law, alleging harm or infringement of rights.

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves the original party from liability in a legal context.

Causal Chain

A sequence of events where each event is the result of the previous one and causes the next, often used in legal and philosophical arguments.