Table 17-4

question 325

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 that there are two profit-maximizing high-speed Internet service providers operating in this market.Further assume that they are not able to collude on the price and quantity of subscriptions to sell.How much profit will each firm earn when this market reaches a Nash equilibrium?

• A) $120,000
• B) $150,000
• C) $200,000
• D) $225,000

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Definitions:

Absenteeism

The frequent absence from work or another duty without good reason.

Quid Pro Quo

A Latin phrase meaning "something for something," which refers to a mutually beneficial exchange or transaction.

Harassment

Unwanted conduct affecting the dignity of men and women in the workplace or social environment, often involving creating an intimidating, hostile, degrading, or offensive atmosphere.

Fondle

To touch or stroke gently and affectionately.