A Group of 13 Consumers Are Trying to Decide Whether

question 24

Multiple Choice

A group of 13 consumers are trying to decide whether to connect to a new communications network.Consumer 1 is of type 1, consumer 2 of type 2, consumer 3 of type 3, and so on.Each consumer's willingness to pay to belong to the network is proportional to the number of consumers who belong.Where k is the number of consumers who belong, the willingness to pay of a type n consumer is equal to k times n.What is the highest price at which 9 consumers could all connect to the network and either make a profit or at least break even?

• A)$47
• B)$50
• C)$43
• D)$42
• E)$45

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Definitions:

Pottery

The craft or profession of making objects from clay, fired at high temperatures to create bowls, vases, and other artifacts.

Primary Invention

The original creation of a new process, method, or device that significantly alters how people live or interact with their environment.

Secondary Innovation

The deliberate application or modification of an existing idea, method, or device.

Paleolithic Period

An era in prehistory, also known as the Old Stone Age, marked by the use of stone tools by early humans.