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)
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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

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)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education