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Suppose All Individuals Are Identical,and Their Monthly Demand for Internet

Question 65

Multiple Choice

Suppose all individuals are identical,and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2) q where p is price in $ per hour and q is hours per month.The firm faces a constant marginal cost of $1.Potential consumer surplus equals


A) $4.
B) $8.
C) $16.
D) $32.

Correct Answer:

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