Refer to Table 18-2. Suppose there is only one internetradio provider in this market and it seeks to maximize itsprofit. The company willa. sell 2,000 subscriptions and charge a priceof $48 for each subscription.b. sell 3,000 subscriptions and charge a priceof $40 for each subscription.c. sell 5,000 subscriptions and charge a priceof $24 for each subscription.d. sell 4,000 subscriptions and charge a priceof $32 for each subscription. Table 18-2The information in the following table shows the total demand for internet radio subscriptions in a small urbanmarket. Assume that each company that provides these subscriptions incurs an annual fixed cost of $20,000 (peryear) and that the marginal cost of providing an additional subscription is always $16.Quantity DemandedPrice(Internet radio subscriptions) (Dollars per subscription per year)05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,0006460565248444036322824201612840

Profit refers to the total income of the company after all the deductions of costs etc.Revenue is…

Refer to Table 18-2. 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 5,000 subscriptions and charge a price of $24 for each subscription. d. sell 4,000 subscriptions and charge a price of $32 for each subscription.

Refer to Table 18-2. 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 5,000 subscriptions and charge a price of $24 for each subscription. d. sell 4,000 subscriptions and charge a price of $32 for each subscription.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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