Refer to Table 17-1. Suppose the town enacts new antitrust laws that prohibit Sydney and Matthew from operating as a monopoly. How many gallons of water will be produced and sold once Sydney and Matthew reach a Nash equilibrium?

A) 540
B) 630
C) 720
D) 810

Antitrust Laws

Legislation enacted to prevent new monopolies' formation and promote competition by regulating anti-competitive conduct by companies.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of other players, leading to a situation where no player has an incentive to deviate from their chosen strategy.

Marginal Cost

Marginal Cost is the increase in cost that arises from the production of one additional unit of a product or service.