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

question 169

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

---

Definitions:

Christopher Columbus

An Italian explorer who completed four voyages across the Atlantic Ocean, opening the way for European exploration and colonization of the Americas.

Protestant Reformation

A major 16th-century movement aimed at reforming the beliefs and practices of the Roman Catholic Church, leading to the creation of Protestantism.

Martin Luther

A German theologian and religious reformer who initiated the Protestant Reformation in the 16th century by challenging the practices of the Roman Catholic Church.

Ninety-Five Theses

The list of moral grievances against the Catholic Church by Martin Luther, a German priest, in 1517.