Solved

Suppose That the Marginal Cost of Providing Public Television to One

Question 64

Multiple Choice

Suppose that the marginal cost of providing public television to one more viewer is zero. If a public television station sets the price of public television equal to its marginal cost, then:


A) the station will have an incentive to provide the optimal level of programming.
B) the station's total revenue will be zero.
C) the station's total revenue will be positive when there are only a few viewers, but will decline as more viewers tune in.
D) the television station will earn zero economic profit.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents