Multiple Choice
Use the following to answer question:
Figure: PPV
-(Figure: PPV) Use Figure: PPV.The figure shows the demand and marginal revenue for a pay-per-view football game on cable TV.Assume that the marginal cost and average cost are a constant $40.If the cable company is a single-price monopoly and maximizes profit,producer surplus will be:
A) $0.
B) $45.
C) $70.
D) $90.
Correct Answer:

Verified
Correct Answer:
Verified
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