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

---

Definitions:

Antiseptic Surroundings

Environments that are clean, sterile, and designed to minimize the risk of infection or contamination.

Home Births

Childbirth that occurs at home rather than in a hospital or birthing center, often involving a midwife or other healthcare professional.

Fetus's Respiration

The process by which a fetus engages in movements that simulate breathing, essential for lung development before birth.

Birth Process

The physiological sequence of events that lead to the delivery of a baby from the mother's uterus into the outside world.