Table 17-4

question 287

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.Assume there are two high-speed Internet service providers that operate in this market.If they are able to collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions,then their agreement will stipulate that

• A) each firm will charge a price of $120 and each firm will sell 5,000 subscriptions.
• B) each firm will charge a price of $160 and each firm will sell 4,000 subscriptions.
• C) each firm will charge a price of $100 and each firm will sell 3,000 subscriptions.
• D) each firm will charge a price of $200 and each firm will sell 3,000 subscriptions.

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Definitions:

Clothing Allowance

A sum of money given to cover the cost of clothing, often as part of a job requirement or allowance.

Purchase Discount

A reduction in price offered to buyers, often as an incentive to make a purchase within a specific timeframe or in larger quantities.

Neutral Subject Line

A subject line in an email or message that is impartial or without bias, often used to avoid influencing the recipient's initial reaction.

Passive Voice

A grammatical construction in which the subject of a sentence is the recipient of an action rather than the performer of the action.