-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 operated under a marginal cost pricing rule, how many households in Oakland are served?

Question

Quizplus · Accepted Answer

At marginal cost pricing, the quantity supplied equals the quantity demanded at the point where marginal cost equals marginal benefit. In this case, the marginal cost curve intersects the demand curve at a quantity of 40,000 households.

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