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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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