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Table 17-5

Question 152

Multiple Choice

Table 17-5.Imagine a small town in which only two residents,Bill and Ben,own wells that produce safe drinking water.Each week Bill and Ben work together to decide how many gallons of water to pump,to bring the water to town,and to sell it at whatever price the market will bear.Assume Bill and Ben 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 are shown in the table below.
Table 17-5.Imagine a small town in which only two residents,Bill and Ben,own wells that produce safe drinking water.Each week Bill and Ben work together to decide how many gallons of water to pump,to bring the water to town,and to sell it at whatever price the market will bear.Assume Bill and Ben 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 are shown in the table below. -Refer to Table 17-5.Since Bill and Ben operate as a profit-maximizing monopoly in the market for water,what price will they charge for water? A) $2 B) $4 C) $6 D) $7
-Refer to Table 17-5.Since Bill and Ben operate as a profit-maximizing monopoly in the market for water,what price will they charge for water?


A) $2
B) $4
C) $6
D) $7

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