Table 17-2 the Information in the Table Depicts the Total Demand for Demand

question 78

Multiple Choice

Table 17-2
The information in the table depicts the total demand for wireless Internet subscriptions in a small urban market. Assume that each wireless Internet operator pays a fixed cost of $100,000 (per year) to provide wireless Internet in the market area and that the marginal cost of providing the wireless Internet service to a household is zero.


-Refer to Table 17-2.If there is only one wireless internet company in this market,what price would it charge for a wireless Internet subscription to maximize its profit

• A)$60
• B)$90
• C)$120
• D)$150

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where missed dividend payments are accumulated and must be paid before any dividends can be issued on other stock classes.

Liability

A financial obligation or debt owed by a company to another entity, to be settled through the transfer of assets or services.

Date of Declaration

The date on which a company announces its intention to pay a dividend or issue a corporate action to its shareholders.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.