A Group of 13 Consumers Are Trying to Decide Whether

question 24

Multiple Choice

A group of 13 consumers are trying to decide whether to connect to a new communications network.Consumer 1 is of type 1, consumer 2 of type 2, consumer 3 of type 3, and so on.Each consumer's willingness to pay to belong to the network is proportional to the number of consumers who belong.Where k is the number of consumers who belong, the willingness to pay of a type n consumer is equal to k times n.What is the highest price at which 9 consumers could all connect to the network and either make a profit or at least break even?

• A)$47
• B)$50
• C)$43
• D)$42
• E)$45

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Definitions:

Conscience

A sense or internal monologue that serves as an advisor on the morality of an individual's actions.

Superego

In Freudian psychoanalytic theory, this part of the personality is responsible for moral standards and ideals, often contrasting with the id.

Freud

An Austrian neurologist named Sigmund Freud established the practice of psychoanalysis, which is a technique for treating mental illnesses by facilitating dialogue between a psychoanalyst and a patient.

Defense Mechanism

Psychological strategies brought into play by individuals or the ego to cope with reality and to maintain self-image by reducing anxiety arising from unacceptable thoughts or feelings.