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

question 9

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

• A)$49
• B)$30
• C)$42
• D)$28
• E)$35

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Definitions:

Mudstone

A fine-grained sedimentary rock formed from mud, characterized by a mixture of clay and silt-sized particles.

Stratigraphic Section

A representation of a vertical sequence of the layers of rocks in a particular area, showing their relative positions and compositions.

Basal Conglomerate

A sedimentary rock consisting of rounded clasts or pebbles embedded in a matrix of finer-grained material, often forming the base of a sedimentary sequence.

Plant-Rich Swamp

Wetland ecosystems characterized by the abundance of vegetation, particularly various types of plants, often found in low-lying areas.