Jack Needs a High-Speed Internet Connection at a Reasonable Price

question 1

Multiple Choice

Jack needs a high-speed Internet connection at a reasonable price. A friend tells him that the DSL central office is at least 7 km from his place. Under the circumstances, which of the following Internet connectivity modes could prove to be most effective?

• A)Dial-up
• B)DSL
• C)Satellite
• D)Cable

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Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no profit or loss.

Competitive Firm

is a business that operates in a market where it has to compete with other firms for customers and cannot influence market prices.

Economic Profit

The surplus obtained from total revenues minus both explicit (out-of-pocket) and implicit (opportunity) costs of all resources employed.

Competitive Firm

A company that operates in a market with many buyers and sellers, where no single entity can influence prices on its own.