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

question 180

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. Suppose there is only one internet radio provider in this market and it seeks to maximize its profit. The company will

• A)sell 2,000 subscriptions and charge a price of $48 for each subscription.
• B)sell 3,000 subscriptions and charge a price of $40 for each subscription.
• C)sell 4,000 subscriptions and charge a price of $32 for each subscription.
• D)sell 5,000 subscriptions and charge a price of $24 for each subscription.

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Definitions:

Paralanguage Cues

Non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice and gestures.

Electronically Mediated Communication

The exchange of information between individuals through electronic means, including email, social media, and texting.

Text Messaging

The act of sending brief, written messages via cellular or mobile phone network from one person to another.

Polygraph Machine

A device used to measure and record physiological responses such as blood pressure, pulse, and perspiration, often used in lie detection.