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97) Refer to the attached Table 6. As long as Matthew and Anna operate as a profit-maximizing monopoly, what will their weekly revenue equal?  A. $270  B. $200  C. $320  D. $360 96) Refer to the attached Table 60. If the market for water was perfectly competitive instead of monopolistic, how many litres of water would be produced and sold?  A. 70  B. 90  C. 120  D. 80

97) Refer to the attached Table 6. As long as Matthew and Anna operate as a profit-maximizing monopoly, what will their weekly revenue equal?  A. $270  B. $200  C. $320  D. $360 96) Refer to the attached Table 60. If the market for water was perfectly competitive instead of monopolistic, how many litres of water would be produced and sold?  A. 70  B. 90  C. 120  D. 80

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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97) Refer to the attached Table 6. As long as Matthew and Anna operate as a profit-maximizing monopoly, what will their weekly revenue equal?

  •  A. $270
  •  B. $200
  •  C. $320
  •  D. $360

96) Refer to the attached Table 60. If the market for water was perfectly competitive instead of monopolistic, how many litres of water would be produced and sold?

  •  A. 70
  •  B. 90
  •  C. 120
  •  D. 80
Table 6 Imagine a small town in which only two residents, Matthew and Anna, own wells that produce water for safe drinking. Each Saturday, Matthew and Anna work together to decide how many litres of water to pump, bring the water to town, and sell it at whatever price the market will bear. To keep things simple, suppose that Matthew and Anna can pump as much water as they want without cost; therefore, the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is reflected in the table. Weekly Quantity (in litres) Weekly Total Revenue Price (and Total Profit) $0 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 10 $110 20 $200 $270 $320 30 40 50 $350 60 S360 70 $350 $320 $270 80 90 100 $200 $110 $0 110 120
Transcribed Image Text:Table 6 Imagine a small town in which only two residents, Matthew and Anna, own wells that produce water for safe drinking. Each Saturday, Matthew and Anna work together to decide how many litres of water to pump, bring the water to town, and sell it at whatever price the market will bear. To keep things simple, suppose that Matthew and Anna can pump as much water as they want without cost; therefore, the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is reflected in the table. Weekly Quantity (in litres) Weekly Total Revenue Price (and Total Profit) $0 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 10 $110 20 $200 $270 $320 30 40 50 $350 60 S360 70 $350 $320 $270 80 90 100 $200 $110 $0 110 120
Table 6 Imagine a small town in which only two residents, Matthew and Anna, own wells that produce water for safe drinking. Each Saturday, Matthew and Anna work together to decide how many litres of water to pump, bring the water to town, and sell it at whatever price the market will bear. To keep things simple, suppose that Matthew and Anna can pump as much water as they want without cost; therefore, the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is reflected in the table. Weekly Quantity (in litres) Weekly Total Revenue Price (and Total Profit) $0 $110 $200 $270 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 10 20 30 40 S320 50 $350 60 $360 70 $350 80 S320 $270 90 100 $200 110 $110 120 $0
Transcribed Image Text:Table 6 Imagine a small town in which only two residents, Matthew and Anna, own wells that produce water for safe drinking. Each Saturday, Matthew and Anna work together to decide how many litres of water to pump, bring the water to town, and sell it at whatever price the market will bear. To keep things simple, suppose that Matthew and Anna can pump as much water as they want without cost; therefore, the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is reflected in the table. Weekly Quantity (in litres) Weekly Total Revenue Price (and Total Profit) $0 $110 $200 $270 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 10 20 30 40 S320 50 $350 60 $360 70 $350 80 S320 $270 90 100 $200 110 $110 120 $0
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