The at a price (connection fee) p0 is the minimal number of customers needed to ensure that at least this number of consumers will benefit from subscribing to the service at the fee p0.

Related MCQs

• Entry into the telecommunication industry                  the utility of the already connected consumers whereas the utility of newly connected consumers _.
• In order to ensure that foreclosures will not take place, regulators should allow all service providers to sell the entire variety of telecommunication, broadcasting, and Internet services.
•                             _ network effects arise when there are "at least two different customer groups that are interdependent, and the utility of at least one group grows as the other group(s) grow".
• Information is reproduced if each agent (the provider and each consumer) makes one copy for the benefit of another consumer.
• When consumers are not identical, a market failure may occur when
• An increase in consumers’ preference for variety of software .
• Support-oriented consumers would prefer buying software over pirating software                                 .
• Under either vertical or horizontal information reproduction, total surplus enjoyed by the η consumers is                                         _.
• The profit level of a bank declines when it makes its ATMs available for the customers of a competing bank.
• The price charged by a monopoly hardware firm .