Figure: PPV Price, Costs, $100 Marginal 90 Revenue 80 70 60 50 40 30 20 MR ||| |||| 0 1 2 3 4 5 6 7 8 9 10 Quantity (number of subscriptions) Reference: Ref 13-7

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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(Figure: PPV) Look at the figure PPV, which shows the demand and marginal revenue for a pay-per-view football game on cable TV. Assume that the marginal cost and average cost are a constant $30. If the cable company is a monopolist, how many subscriptions there will be?

 
around 3.8
 
around 7.2
 
around 8.7
 
around 4.3
Figure: PPV
Price,
Costs, $100
Marginal 90
Revenue
80
70
60
50
40
30
20
MR
||| ||||
0 1 2 3 4 5 6 7 8 9
10
Quantity
(number of subscriptions)
Reference: Ref 13-7
Transcribed Image Text:Figure: PPV Price, Costs, $100 Marginal 90 Revenue 80 70 60 50 40 30 20 MR ||| |||| 0 1 2 3 4 5 6 7 8 9 10 Quantity (number of subscriptions) Reference: Ref 13-7
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