Eleven Consumers Are Trying to Decide Whether to Connect to a New

question 6

Multiple Choice

Eleven consumers are trying to decide whether to connect to a new communications network.Consumer 1 is of type 1, consumer 2 is of type 2, consumer 3 is of type 3, and so on.Where k is the number of consumers connected to the network (including oneself) , a consumer of type n has a willingness to pay to belong to this network equal to k times n.What is the highest price at which 11 consumers could all connect to the network and either make a profit or at least break even?

• A)$12
• B)$10
• C)$1
• D)$0
• E)$11

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Definitions:

Enterprise Resource Planning

Integrated management software systems designed to automate and streamline core business processes, enhancing efficiency and decision-making across an organization.

Strategic Business Unit Level

A distinct part of a larger corporation, focused on a specific strategic objective or market sector.

Targeted Customers

A specific group of consumers identified as the primary audience for a product or service, based on shared characteristics or needs.

Overall Strategy

A comprehensive plan detailing how a business or organization will achieve its goals and objectives.