Bidding for the rights to provide cable television services. The demand for cable television is given by the equation P - 100 -Q. Firm 1 has an average cost of AC! 10, Firm 2 has an average cost of AC? = 20, and Firm 3 has an average cost of ACS = 30. If the rights are awarded using an English auction, approximately what is the resulting price and quantity of services provided? A. P= 10; Q = 90. B. P= 20; Q = 80. C. P= 30; Q = 70. D. P= 20; Q = 90.
Bidding for the rights to provide cable television services. The demand for cable television is given by the equation P - 100 -Q. Firm 1 has an average cost of AC! 10, Firm 2 has an average cost of AC? = 20, and Firm 3 has an average cost of ACS = 30. If the rights are awarded using an English auction, approximately what is the resulting price and quantity of services provided? A. P= 10; Q = 90. B. P= 20; Q = 80. C. P= 30; Q = 70. D. P= 20; Q = 90.
Chapter1: Making Economics Decisions
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![Three firms are bidding for the rights to provide cable television services. The
demand for cable television is given by the equation P=100-Q. Firm 1 has an average
cost of AC¹ =
10, Firm 2 has an average cost of AC2= 20, and Firm 3 has an average
cost of AC3 =
30. If the rights are awarded using an English auction, approximately
what is the resulting price and quantity of services provided?
A. P= 10; Q = 90.
B. P = 20; Q = 80.
C. P = 30; Q = 70.
D. P= 20; Q = 90.
E. P= 10; Q = 80.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14883e3d-a3b9-4971-b1ba-d6facc0e6986%2Fd0839a80-55b3-4b3f-ab6c-9054bf0f070e%2Fcyu3ad_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Three firms are bidding for the rights to provide cable television services. The
demand for cable television is given by the equation P=100-Q. Firm 1 has an average
cost of AC¹ =
10, Firm 2 has an average cost of AC2= 20, and Firm 3 has an average
cost of AC3 =
30. If the rights are awarded using an English auction, approximately
what is the resulting price and quantity of services provided?
A. P= 10; Q = 90.
B. P = 20; Q = 80.
C. P = 30; Q = 70.
D. P= 20; Q = 90.
E. P= 10; Q = 80.
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