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

question 2

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 4 consumers could all connect to the network and either make a profit or at least break even?

• A)$24
• B)$64
• C)$40
• D)$28
• E)$32

---

Definitions:

Ownership Share

The portion of a company or property legally owned by an individual or entity, often represented as a percentage.

Board Of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Formal Meetings

Formal meetings are planned gatherings with a set agenda, where members of an organization come together to discuss and make decisions on various topics in a structured manner.

Managing A Corporation

The process of overseeing the operations and making strategic decisions for a corporation, typically involving tasks such as planning, organizing, directing, and controlling resources.