Table 17-7 The Information in the Table Below Shows the Total Demand

question 58

Multiple Choice

Table 17-7
The information in the table below shows the total demand for internet radio subscriptions in a small urban market. Assume that each company that provides these subscriptions incurs an annual fixed cost of $20,000 (per year) and that the marginal cost of providing an additional subscription is always $16.
-Refer to Table 17-7. Suppose there is only one internet radio provider in this market and it seeks to maximize its profit. The company will

• A)sell 2,000 subscriptions and charge a price of $48 for each subscription.
• B)sell 3,000 subscriptions and charge a price of $40 for each subscription.
• C)sell 4,000 subscriptions and charge a price of $32 for each subscription.
• D)sell 5,000 subscriptions and charge a price of $24 for each subscription.

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Definitions:

Cohabitation

The state of living together and having a sexual relationship without being married.

Opposite Sex

A term typically used to describe individuals of the gender different from one's own, often in biological or social contexts.

Serial Monogamy

A pattern of engaging in successive monogamous romantic relationships, where an individual has only one partner at a time but multiple partners over their lifetime.

Exclusive Sexual Relationship

A romantic relationship where partners agree to engage in sexual activities only with each other, not allowing sexual activities outside the relationship.