A firm is considering building a two- way network that links 12 users. The cost of building
Question:
a. How many potential connection services does this network provide?
b. If each user is willing to pay $ 150 to connect to the network, will the firm profit by building the network?
c. If each user is willing to pay an average of $ 12 for each potential connection service provided by the network, will the firm profit by building the network?
d. What happens to the number of potential connection services if one additional user joins the network?
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Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
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