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

question 403

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 that Maria and Miguel work together in order to operate as a profit-maximizing monopolist. What price will they charge for milk?

• A)$14
• B)$12
• C)$10
• D)$8

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Definitions:

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Labour Market Scan

A process of examining and analyzing the current state of the job market to understand trends, job availability, salary ranges, and required skill sets.

Balfour Declaration

A statement from the British government in 1917 expressing support for the establishment of a "national home for the Jewish people" in Palestine, then an Ottoman region with a minority Jewish population.

Jewish People

An ethnoreligious group originating from the Israelites of the ancient Near East, with a rich cultural and religious tradition found in Judaism.