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

question 256

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 internet radio 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 $40 and each firm will sell 3,000 subscriptions.
• B)each firm will charge a price of $40 and each firm will sell 1,500 subscriptions.
• C)each firm will charge a price of $32 and each firm will sell 2,000 subscriptions.
• D)each firm will charge a price of $20 and each firm will sell 3,000 subscriptions.

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Definitions:

War on Drugs

The War on Drugs is a government-led initiative aimed at stopping the illegal drug trade, reducing drug addiction and abuse, and enforcing drug prohibition laws.

Substance Abuse

The misuse of drugs or alcohol that leads to clinical impairment or distress.

DiClemente and Prochaska Model

A model describing a five-stage process of change for individuals overcoming addictive behaviors and other negative habits.

Precontemplation

A stage in the behavior change process where the individual is not yet considering change or is unaware of the need for change.