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:

Stand Her Ground

Refers to laws or principles that allow individuals to use force in self-defense without the duty to retreat, when they perceive a threat to their safety.

Broad Categories

General classifications or groupings used to organize complex information or items into simpler, more manageable segments.

Breaking and Entering

The criminal act of entering a building or residence illegally, with the intent to commit a crime, especially theft.

Fraudulent Taking

An act of taking someone's property illegally, with deceit or trickery.