Problem M$4-01($algo$)$

A firm is considering building a two$-$way network that links $9$ users. The cost of building the network is $$8,000.$

a$.$ How many potential connection services does this network provide?

connection services

b$.$ If each user is willing to pay $$120$ to connect to the network, will the firm profit by building the network?

multiple choice $1$

No

Yes

c$.$ If each user is willing to pay an average of $$8$ for each potential connection service provided by the network, will the firm profit by building the network?

multiple choice $2$

Yes

No

d$.$ What is the increase in the number of potential connection services if one additional user joins the network?

connection services