Table 17-4

question 287

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.Assume there are two high-speed Internet service providers that operate in this market.If they are able to collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions,then their agreement will stipulate that

• A) each firm will charge a price of $120 and each firm will sell 5,000 subscriptions.
• B) each firm will charge a price of $160 and each firm will sell 4,000 subscriptions.
• C) each firm will charge a price of $100 and each firm will sell 3,000 subscriptions.
• D) each firm will charge a price of $200 and each firm will sell 3,000 subscriptions.

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Definitions:

Employee Discrimination

Unfair treatment of employees based on race, gender, age, religion, disability, or any other characteristic, rather than their merits or abilities.

Company Favouritism

The practice of giving unfair preferential treatment to one's own company or specific employees within it.

Class Structure

The organization of society into hierarchical layers based on socio-economic status, wealth, or occupation.

Income Distribution

The way in which total income is shared among the members of a society.