Refer to the information provided.If Black Box Pay TV is unable to price discriminate, what price will it choose to maximise its profit and what is the amount of profit?
A)price = $15, profit = $600 000
B)price = $200, profit = $1 000 000
C)price = $200, profit = $750 000
D)price = $15, profit = $350 000

Question

Quizplus · Accepted Answer

Without price discrimination, Black Box Pay TV will choose the price where marginal cost equals marginal revenue to maximize profit. Given the options, price = $200 and profit = $750,000 is the most likely scenario for maximizing profit without price discrimination.

Refer to the Information Provided