Question: rable 3 7 8 Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce sate drinking wateh Each weak
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Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce sate drinking wateh Each weak Rochelle and Alee work together to decide now many gallors of water to pump. They bring the water to town and sell te at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump ass 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:
tabletableQuantityin gallonsPrice,tableTotal Revenueand Total Profit$$
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