If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below.
If there is a pay-per-view charge to watch a fight, the outcome is ________ because ________.
A) efficient; prices will allocate the program to those who value it the most
B) efficient; the marginal cost of an additional viewing household is zero
C) inefficient; the marginal cost of an additional viewing household is zero
D) inefficient; television stations would not always make a profit
Correct Answer:
Verified
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