Multiple Choice
Table 17-7
The information in the table below shows the total demand for internet radio subscriptions in a small urban market. Assume that each company that provides these subscriptions incurs an annual fixed cost of $20,000 (per year) and that the marginal cost of providing an additional subscription is always $16. 
-Refer to Table 17-7. Suppose there is only one internet radio provider in this market and it seeks to maximize its profit. The company will
A) sell 2,000 subscriptions and charge a price of $48 for each subscription.
B) sell 3,000 subscriptions and charge a price of $40 for each subscription.
C) sell 4,000 subscriptions and charge a price of $32 for each subscription.
D) sell 5,000 subscriptions and charge a price of $24 for each subscription.
Correct Answer:
Verified
Correct Answer:
Verified
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