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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
(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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd29d6a2f-e688-421f-bd62-aafdcb63201c%2F7a4c88b8-65a7-4355-b161-3afaf1992d7f%2Fprx96x.png&w=3840&q=75)
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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