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:

Newspaper Articles

Written pieces published in newspapers that provide information on current events, features, or commentary.

Mixed Method Approach

An approach in research that combines qualitative and quantitative methods to gain a comprehensive understanding of a research question.

Research Methods

Strategies used to collect data.

Participant Observation

A qualitative research method where the researcher immerses themselves in the community or situation they are studying to observe and participate in its activities.