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)
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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa13fc197-37d0-484e-bac7-0f0ce015b294%2Ff6441841-3615-48f3-b3a6-52482ab2d1a5%2Ffrf2fmm_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa13fc197-37d0-484e-bac7-0f0ce015b294%2Ff6441841-3615-48f3-b3a6-52482ab2d1a5%2F0r0o4wh_processed.png&w=3840&q=75)
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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