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

question 442

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. Assume there are two profit-maximizing internet radio providers operating in this market. Further assume that they are able to collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions. If the firms divide the market evenly, how much profit will each company earn?

• A)$12,000
• B)$16,000
• C)$44,000
• D)$60,000

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Definitions:

Primary Needs

Fundamental requirements essential for an individual's survival and well-being, such as food, shelter, and safety.

Motivation

the process that initiates, guides, and maintains goal-oriented behaviors.

Drives

The innate biological patterns of behavior that are assumed to be universal across cultures, which motivate behavior and underlie human motivation.

Human Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience and mental functions.