Table 2 Imagine a small town in which only two residents, Lisa and Mark, own wells th Time left 1:57 drinking water. Each week Lisa and Mark work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Lisa and Mark can pump as much water as they want without cost so that the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below: Quantity (in gallons) 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Price Select one: O a. 0 O b. 1,200 O c. 600 O d. 900 $120 110 100 90 80 70 60 50 40 30 20 10 0 Total Revenue (and Total Profit) $0 11,000 20,000 27,000 32,000 35,000 36,000 35,000 32,000 27,000 20,000 11,000 0 Refer to Table 2. If the market for water were perfectly competitive instead of monopolistic, how many gallo of water would be produced and sold?
Table 2 Imagine a small town in which only two residents, Lisa and Mark, own wells th Time left 1:57 drinking water. Each week Lisa and Mark work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Lisa and Mark can pump as much water as they want without cost so that the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below: Quantity (in gallons) 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Price Select one: O a. 0 O b. 1,200 O c. 600 O d. 900 $120 110 100 90 80 70 60 50 40 30 20 10 0 Total Revenue (and Total Profit) $0 11,000 20,000 27,000 32,000 35,000 36,000 35,000 32,000 27,000 20,000 11,000 0 Refer to Table 2. If the market for water were perfectly competitive instead of monopolistic, how many gallo of water would be produced and sold?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Table 2
Imagine a small town in which only two residents, Lisa and Mark, own wells th Time left 1:57
drinking water. Each week Lisa and Mark work together to decide how many gallons of
water to pump. They bring the water to town and sell it at whatever price the market will
bear. To keep things simple, suppose that Lisa and Mark can pump as much water as they
want without cost so that the marginal cost of water equals zero. The weekly town demand
schedule and total revenue schedule for water is shown in the table below:
Quantity
(in gallons)
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
Price
Select one:
O a. 0
O b. 1,200
O c. 600
O d.
900
$120
110
100
90
80
70
60
50
40
30
20
10
0
Total Revenue
(and Total Profit)
$0
11,000
20,000
27,000
32,000
35,000
36,000
35,000
32,000
27,000
20,000
11,000
0
Refer to Table 2. If the market for water were perfectly competitive instead of monopolistic,
how many gallo of water would be produced and sold?
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