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

question 165

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 that 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. How much profit will each firm earn when this market reaches a Nash equilibrium?

• A)$12,000
• B)$16,000
• C)$52,000
• D)$64,000

---

Definitions:

Fetal Aorta

The primary artery in the fetus that carries oxygenated blood from the heart to various parts of the body, evolving from the embryonic heart.

Axillary Artery

A major blood vessel that carries oxygenated blood to the lateral aspect of the thorax, the axilla (armpit), and the upper limb.

Brachial Artery

A major blood vessel of the upper arm that is the continuation of the axillary artery beyond the lower margin of teres major muscle.

Costocervical Artery

A branch of the subclavian artery that supplies blood to the upper back and neck areas.