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

question 5

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)$40
• C)$64
• D)$28
• E)$32

---

Definitions:

Distributed Leadership

Shares responsibility among members for meeting team task and maintenance needs.

Group Phenomenon

Involves the behaviors, dynamics, and outcomes that emerge from the interaction of individuals within a group.

Norm Of Reciprocity

A principle suggesting that individuals respond to kindness or positive actions with similar behaviors, fostering cooperative relationships.

Given Back

The act of returning something to its original place or to a person who initially provided it, often used in the context of donations or contributions.