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The Demand Curve for Boxing Programs on TV Is Plotted

Question 82

Multiple Choice

The demand curve for boxing programs on TV is plotted in the graph below: The demand curve for boxing programs on TV is plotted in the graph below:   When the fight is shown as pay-per-view television programming so viewers are charged a fee to watch,the outcome is __________ because __________. A)  efficient;prices will allocate the program to those who value it most B)  efficient;the marginal cost is zero C)  inefficient;the marginal cost is zero D)  efficient;otherwise firms would have no incentive to provide a good that people value
When the fight is shown as pay-per-view television programming so viewers are charged a fee to watch,the outcome is __________ because __________.


A) efficient;prices will allocate the program to those who value it most
B) efficient;the marginal cost is zero
C) inefficient;the marginal cost is zero
D) efficient;otherwise firms would have no incentive to provide a good that people value

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