Table: Cable TV $$\begin{array} { l c c c }
\hline & \text { Steve } & \text { Jim } & \text { Sandy } \
\hline \text { HBO } & \$ 30 & \$ 20 & \$ 25 \
\text { ESPN } & \$ 50 & \$ 20 & \$ 15 \
\text { HGTV } & \$ 5 & \$ 5 & \$ 40 \
\hline
\end{array}$$
The table represents the maximum willingness to pay (per month) across three consumers for different TV channels. The marginal cost of providing each of these channels to an additional consumer approximates zero. If the cable television company does not bundle stations, what price should they charge per station to maximize profits across these three consumers? Could the company increase profits by bundling these three stations together? How much would profits increase or decrease by if the company bundled the stations?

Question

Table: Cable TV $$\begin{array} { l c c c } 
\hline & \text { Steve } & \text { Jim } & \text { Sandy } \
\hline \text { HBO } & \$ 30 & \$ 20 & \$ 25 \
\text { ESPN } & \$ 50 & \$ 20 & \$ 15 \
\text { HGTV } & \$ 5 & \$ 5 & \$ 40 \
\hline
\end{array}$$ 
The table represents the maximum willingness to pay (per month) across three consumers for different TV channels. The marginal cost of providing each of these channels to an additional consumer approximates zero. If the cable television company does not bundle stations, what price should they charge per station to maximize profits across these three consumers? Could the company increase profits by bundling these three stations together? How much would profits increase or decrease by if the company bundled the stations?

Quizplus · Accepted Answer

The Answer of Table: Cable TV $$\begin{array} { l c c c } 
\hline & \text { Steve } & \text { Jim } & \text { Sandy } \
\hline \text { HBO } & \$ 30 & \$ 20 & \$ 25 \
\text { ESPN } & \$ 50 & \$ 20 & \$ 15 \
\text { HGTV } & \$ 5 & \$ 5 & \$ 40 \
\hline
\end{array}$$ 
The table represents the maximum willingness to pay (per month) across three consumers for different TV channels. The marginal cost of providing each of these channels to an additional consumer approximates zero. If the cable television company does not bundle stations, what price should they charge per station to maximize profits across these three consumers? Could the company increase profits by bundling these three stations together? How much would profits increase or decrease by if the company bundled the stations?

Table: Cable TV The Table Represents the Maximum Willingness to Pay (Per Month)