To make their services free to users, most social networks rely on advertisements to cover their costs. Suppose that a new social network has $12000.00 in total operating costs regardless of the number of users. If the average user clicks on an ad 0.50 times, and each click earns the social network $1 in ad revenue, how many users will the network need to sign up in order to break even? Give your answer to two decimals.

To make their services free to users, most social networks rely on advertisements to cover their costs. Suppose that a new social network has $12000.00 in total operating costs regardless of the number of users. If the average user clicks on an ad 0.50 times, and each click earns the social network $1 in ad revenue, how many users will the network need to sign up in order to break even? Give your answer to two decimals.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section: Chapter Questions

Problem 8QP

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