Table 16-3
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.

-Refer to Table 16-3.If there is only one digital cable TV company in this market,what price would it charge for a premium digital channel subscription to maximize its profit?
A)$40
B)$60
C)$80
D)$100

Question

Table 16-3
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.
 
-Refer to Table 16-3.If there is only one digital cable TV company in this market,what price would it charge for a premium digital channel subscription to maximize its profit?
A)$40 
B)$60 
C)$80 
D)$100

Quizplus · Accepted Answer

The Answer of Table 16-3
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.
 
-Refer to Table 16-3.If there is only one digital cable TV company in this market,what price would it charge for a premium digital channel subscription to maximize its profit?
A)$40 
B)$60 
C)$80 
D)$100

Table 16-3 The Information in the Table Below Shows the Total Demand