-The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC is left unregulated, how many households in Oakland are served?

Question

Quizplus · Accepted Answer

In a monopolistic market, the provider sets the quantity where marginal cost (MC) equals marginal revenue (MR) to maximize profit. The question implies that TWC, being the sole provider, will choose the profit-maximizing quantity, which is typically at the intersection of the MC and MR curves. Without a specific figure provided, the standard economic model suggests this intersection point determines the quantity produced and sold. Given the choices, the correct answer is inferred based on typical market behavior of a monopoly.

-The Above Figure Represents the Market for Cable Television in Oakland