-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

Under a marginal cost pricing rule, a firm will produce and sell its product up to the point where the marginal cost (MC) of producing an additional unit equals the market price. Without the specific figure, we can't visually analyze the exact point where MC equals the market price. However, based on the information provided, if TWC were to follow this rule, it would serve the number of households where its marginal cost equals the price households are willing to pay. The correct answer typically corresponds to the quantity where the MC curve intersects the demand curve in the market diagram. Since the specific details or graph is not provided, the correct answer is chosen based on the assumption that the question implies C (40,000 households) is the correct level of output under marginal cost pricing.

-The Above Figure Represents the Market for Cable Television in Oakland,Florida.Time