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If a Boxing Fight Is Shown on Pay-Per-View Television Every

Question 86

Multiple Choice

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 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 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

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