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

question 442

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 able to collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions. If the firms divide the market evenly, how much profit will each company earn?

• A)$12,000
• B)$16,000
• C)$44,000
• D)$60,000

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Definitions:

MZ Twins

Monozygotic twins, also known as identical twins, originating from a single fertilized egg and sharing nearly identical genetic materials.

DZ Twins

Dizygotic twins, also known as fraternal twins, are siblings that result from two different eggs fertilized by two different sperm cells, sharing about 50% of their genetic material.

Environmental Share

The portion of the environment that contributes to differences among individuals' behaviors or traits.

Genetics

The study of genes, genetic variation, and heredity in living organisms.