Table 17-2
the Information in the Following Table Shows the Total

question 6

Multiple Choice

Table 17-2
The information in the following table 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.
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity Demanded } \\\text { (Internet radio } \\\text { sub scriptions) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per subscription } \\\text { per year) }\end{array} \\\hline 0 & 64 \\\hline 500 & 60 \\\hline 1,000 & 56 \\\hline 1,500 & 52 \\\hline 2,000 & 48 \\\hline 2,500 & 44 \\\hline 3,000 & 40 \\\hline 3,500 & 36 \\\hline 4,000 & 32 \\\hline 4,500 & 28 \\\hline 5,000 & 24 \\\hline 5,500 & 20 \\\hline 6,000 & 16 \\\hline 6,500 & 12 \\\hline 7,000 & 8 \\\hline 7,500 & 4 \\\hline 8,000 & 0 \\\hline\end{array}$$ ​
-Refer to Table 17-2. 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:

Overdependence

Excessive reliance on someone or something, potentially leading to a lack of autonomy.

Insecure Patterns

Behavior patterns rooted in feelings of insecurity, leading to anxiety or avoidance in personal relationships or decision-making.

Attachment

An emotional bond between individuals, which in organizational contexts may refer to the loyalty and commitment of employees to their workplace.

Preventive Stress Management

A proactive approach to identifying and reducing stressors in the workplace to improve overall well-being and productivity.