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

question 6

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

• A)$12
• B)$10
• C)$1
• D)$0
• E)$11

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Definitions:

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation that is designed to protect the public.

Res Ipsa Loquitur

A legal doctrine that allows an inference of negligence to be drawn from the very nature of an accident or injury, in the absence of direct evidence on how the defendant behaved.

Proximate Cause

A legal concept that determines whether the harm or damage sustained by an individual is directly related to an event or action, playing a significant role in determining liability.

Legal Cause

A legally sufficient reason or justification for an action, event, or decision, especially in the context of litigation or legal obligations.