You own an online video game that gets more fun the more peopleare playing it. Each persons
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You own an online video game that gets more fun the more peopleare playing it. Each person’s willingness to pay for game is 5N, where N is the numberof people playing the game. For example, if two people (N = 2) are playing the game,each of them is willing to pay $10 to play. It is costly to maintain a big gaming networkthough, and the marginal cost of expanding the network is 0.1N^2, which is increasing in N. What is the profit maximizing number of players to include in the network?
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