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

question 2

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)$64
• C)$40
• D)$28
• E)$32

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Definitions:

Legitimate Power

Legitimate Power is the authority that an individual or organization lawfully possesses, allowing them to exert influence or control over others in recognized, official capacities.

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A form of governance where authority is granted to the citizens, who either govern themselves or select representatives through open elections.

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A significant site of a 1863 battle during the American Civil War, known for its pivotal role in turning the tide of the war in favor of the Union and for President Lincoln's subsequent address.

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Strategies and actions developed and implemented by governments to address public issues and regulate societal functions.