CBS is selling advertising for its broadeast of the AFC championship game. The station's demand for minutes of commercial advertisıng time is the demand it taces from the companies to which it sells advertising time: PAns = 100.000 - 50Q. CBS has MC = $2000. Buyers pay CBS a price PCBS for each minute of advertising and add $1.000 for each ad to cover the tax they pay, so their MCADS PCBS+ 1000. No one has any fixed costs. The price buyers will pay for ads is (use dollar sign and any commas: no decimal places)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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CBS is selling advertising for its broadeast of the AFC championship game. The station's demand for
minutes of commercial advertising time is the demand it faces from the companies to which it sells
advertising tme: Pans= 100,000 - 500.CBS Las MC -S2000. Buyes pay CBS aprice Pens for cach
minute of adNertising and add S1.000 for each ad to cover the tax they pay, so their MCans PeRs + 1000,
No one has any fixed costts.
Ihe price buyers will pay tor ads is (use dollar sign and any commns: no decimal places)
Transcribed Image Text:CBS is selling advertising for its broadeast of the AFC championship game. The station's demand for minutes of commercial advertising time is the demand it faces from the companies to which it sells advertising tme: Pans= 100,000 - 500.CBS Las MC -S2000. Buyes pay CBS aprice Pens for cach minute of adNertising and add S1.000 for each ad to cover the tax they pay, so their MCans PeRs + 1000, No one has any fixed costts. Ihe price buyers will pay tor ads is (use dollar sign and any commns: no decimal places)
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