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

question 508

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. The socially efficient level of output supplied to this market is

• A)4,000
• B)5,000
• C)6,000
• D)8,000

---

Definitions:

Federal Trade Commission's Franchise Rule

A regulation issued by the FTC that requires franchisors to provide detailed disclosures to potential franchisees, to ensure they have the necessary information before investing.

Disclosure Documents

Official documents provided to inform or disclose comprehensive information about a certain matter, often used in legal, financial, or real estate transactions.

Antitrust Laws

Regulations established by the government to prevent monopolies and promote competition among businesses.

Dealers Day in Court Act

A U.S. law that provides automobile dealers protection against unfair practices by manufacturers.