Comcast has a cable monopoly. The following graph shows the demand, MR, and MC curve of Comcast. Use the graph to answer questions 3 to 8. Price (P) and Costs (in dollars per subscription) $25 $22 $21 $20 $19 0 5 6.5 MC MR ATC Q (Number of subscriptions in millions per month)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Comcast has a cable monopoly. The following graph shows the demand, MR, and
MC curve of Comcast. Use the graph to answer questions 3 to 8.
Price (P) and Costs (in
dollars per subscription)
$25
$22
$21
$20
$19
0
5
6.5
MC
7
MR
ATC
Q (Number of subscriptions
in millions per month)
Transcribed Image Text:Comcast has a cable monopoly. The following graph shows the demand, MR, and MC curve of Comcast. Use the graph to answer questions 3 to 8. Price (P) and Costs (in dollars per subscription) $25 $22 $21 $20 $19 0 5 6.5 MC 7 MR ATC Q (Number of subscriptions in millions per month)
6) Suppose the government imposes a tax of $20 million per month on cable
producers. If Comcast wants to maximize its profit, what price per subscription
should it charge per month?
olololo
$19
$25
$20
$22
Transcribed Image Text:6) Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, what price per subscription should it charge per month? olololo $19 $25 $20 $22
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