Table 17-7 The Information in the Table Below Shows the Total Demand

question 302

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. Assume there are two profit-maximizing internet radio providers operating in this market. Further assume that they are not able to collude on the price and quantity of subscriptions to sell. What price will they charge for a subscription when this market reaches a Nash equilibrium?

• A)$24
• B)$32
• C)$40
• D)$48

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Definitions:

Marketing

The strategic business process of creating, promoting, and selling products or services, including market research and advertising.

Nonverbal Communication

Nonverbal communication involves the transmission of messages or information through facial expressions, body language, gestures, eye contact, and other non-linguistic means.

Eye Contact

The act of looking directly into another person's eyes, which can convey attention, confidence, or other emotions.

Oral

Pertaining to the mouth, or in the context of communication, referring to spoken rather than written word.