Multiple Choice
Table 17-4. The information in the table below shows the total demand for high-speed Internet subscriptions in a small urban market. Assume that each company that provides these subscriptions incurs an annual fixed cost of $200,000 (per year) and that the marginal cost of providing an additional subscription is always $80.
-Refer to Table 17-4.Suppose there is only one high-speed Internet service provider in this market and it seeks to maximize its profit.The company will
A) sell 6,000 subscriptions and charge a price of $200 for each subscription.
B) sell 8,000 subscriptions and charge a price of $160 for each subscription.
C) sell 10,000 subscriptions and charge a price of $120 for each subscription.
D) sell 12,000 subscriptions and charge a price of $80 for each subscription.
Correct Answer:
Verified
Correct Answer:
Verified
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