Price and cost (dollars per subscription)64.0058.0048.4040.00MRMCATCD3280Quantity of cable subscriptions (per month in thousands)Q KThe graph to the right depicts the demand for cable subscriptions from a local cable company along with theaverage total cost and marginal cost of producing cable subscriptions. Suppose the local cable company is amonopoly.What is the profit-maximizing quantity of cable subscriptions? thousand subscriptions per month. (Enter anumeric response using an integer.)What is the corresponding profit-maximizing price? $ per subscription. (Enter a numeric response using areal number rounded to two decimal places.)Calculate the local cable company's profits. $thousand per month. (Enter a numeric response using a realnumber rounded to two decimal places.)

In a monopoly, demand curve and marginal revenue are downward sloping. The seller has to lower the…

Answered: Price and cost (dollars per…

Price and cost (dollars per subscription) 64.00 .... 58.00 48.40 40.00 MR MC ATC D 32 80 Quantity of cable subscriptions (per month in thousands) Q Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Price and cost (dollars per subscription)
64.00
58.00
48.40
40.00
MR
MC
ATC
D
32
80
Quantity of cable subscriptions (per month in thousands)
Q

K
The graph to the right depicts the demand for cable subscriptions from a local cable company along with the
average total cost and marginal cost of producing cable subscriptions. Suppose the local cable company is a
monopoly.
What is the profit-maximizing quantity of cable subscriptions? thousand subscriptions per month. (Enter a
numeric response using an integer.)
What is the corresponding profit-maximizing price? $ per subscription. (Enter a numeric response using a
real number rounded to two decimal places.)
Calculate the local cable company's profits. $thousand per month. (Enter a numeric response using a real
number rounded to two decimal places.)

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