The Following Table Shows a Small Community's Demand for Monthly

question 49

Multiple Choice

The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster) sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero) due to excess capacity.Use this information to answer the following questions:

-If this market were highly competitive instead of a duopoly,the market price would be __________ and the quantity of streaming movie subscriptions purchased each month would be __________.

• A) $0; 1,000
• B) $2; 800
• C) $4; 600
• D) $6; 400
• E) $8; 800

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Definitions:

Henri Fayol

A French engineer and management theorist best known for developing a general theory of business administration and establishing the 14 principles of management.

Motivating

The act of providing motivation or encouragement to someone to trigger action or engagement.

Operational Approach

A method or strategy applied in the functioning and management of operations within an organization to improve efficiency and effectiveness.

Efficiency

The ratio of the output to the input of any system, highlighting the ability to use the least amount of resources to achieve the highest amount of output.