Suppose All Individuals Are Identical,and Their Monthly Demand for Internet

question 63

Multiple Choice

Suppose all individuals are identical,and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2) q where p is price in $ per hour and q is hours per month.The firm faces a constant marginal cost of $1.If the firm will charge a monthly access fee plus a per hour rate,the monthly access fee will equal

• A) $1.
• B) $5.
• C) $8.
• D) $16.

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Definitions:

Assumptions

Beliefs or statements taken for granted without proof.

Phenomena

Observable events or occurrences that can be investigated scientifically to understand their underlying principles.

Theory

An organized system of assumptions and principles that purports to explain a specified set of phenomena and their interrelationships.

Informed Consent

The doctrine that anyone who participates in human research must do so voluntarily and must know enough about the study to make an intelligent decision about whether to take part.