Exhibit 13-1 Cable Television Monopolist

Exhibit 13-1 Cable television monopolist

As shown in Exhibit 13-1, if regulators follow a fair return pricing strategy, the price will be:

A) $10, the quantity will be 100, and the profit will be negative.
B) $15, the quantity will be 80, and the profit will be $0.
C) $15, the quantity will be 40, and the profit will be $0.
D) $25, the quantity will be 40, and the profit will be positive.