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

question 9

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

• A)$49
• B)$30
• C)$42
• D)$28
• E)$35

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Definitions:

Planned Presentation

A structured and rehearsed sales pitch designed to guide the customer through the buying process and address anticipated concerns.

Rejection Signals

Indicators that suggest someone is not interested or unwilling to accept an idea or proposal.

Product Prices

The amount of money required to purchase a product, which can vary based on factors like market demand, production costs, and competition.

Prospect

A potential customer or client who has been identified as fitting the target market for a product or service.