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:

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit, typically collected within a short time period.

Individual Asset

A single item of property, whether tangible or intangible, that is owned and has value to the entity holding it.

Liability Decreases

A reduction in the amounts owed by an entity to external parties or creditors.

Debit Balance

An account balance where the total debits exceed the total credits, often indicating the amount that a company or individual owes.