Table 17-4

question 348

Multiple Choice

Table 17-4. The information in the table below shows the total demand for high-speed Internet subscriptions in a small urban market. Assume that each company that provides these subscriptions incurs an annual fixed cost of $200,000 (per year) and that the marginal cost of providing an additional subscription is always $80.

-Refer to Table 17-4.Suppose there is only one high-speed Internet service provider in this market and it seeks to maximize its profit.The company will

• A) sell 6,000 subscriptions and charge a price of $200 for each subscription.
• B) sell 8,000 subscriptions and charge a price of $160 for each subscription.
• C) sell 10,000 subscriptions and charge a price of $120 for each subscription.
• D) sell 12,000 subscriptions and charge a price of $80 for each subscription.

Understand the essential limitations of non-financial measures.

Understand how strategy maps demonstrate cause-and-effect relationships in business processes.

Recognize the reasons why improvements in non-financial performance do not always translate into profitability.

Comprehend different benchmarking strategies and their limitations.

---

Definitions:

Self-Serving Bias

The tendency to attribute positive outcomes to one's own actions and negative outcomes to external factors.

Credit

The provision of resources (such as money) now in exchange for repayment in the future, with or without interest.

Blame

The act of holding someone responsible for something wrong or unfortunate.

Stereotyping

The oversimplified and generalized beliefs or expectations about individuals based on their membership in a certain group.