Use the Following to Answer Question

question 161

Multiple Choice

Use the following to answer question:
Figure: Demand and Marginal Revenue
-(Figure: Demand and Marginal Revenue) Use Figure: Demand and Marginal Revenue.The figure refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade;the marginal cost of allowing consumers to download the upgrade is zero.What is the efficient level of output for the upgrade?

• A)0
• B)80,000
• C)125,000
• D)250,000

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Definitions:

Frequency Distribution

A summary of a set of data that shows the number of occurrences of each unique value or bin of values.

Cumulative Percent

Cumulative percent is a statistical term describing the percentage that a given value, or a value smaller than it, has in the total number of values in a dataset.

Arrests

Arrests refer to the act of detaining or capturing someone by legal authority based on an accusation of committing a crime.

Cumulative Percent

The percentage that represents the sum of a category and all categories that are ranked lower in a frequency distribution.