Multiple Choice
Use the following to answer questions:
Figure: PPV
-(Figure: PPV) Look at the figure PPV, which 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 $20. If the cable company is in a perfectly competitive industry, how much is deadweight loss?
A) $0
B) $320
C) $160
D) $500
Correct Answer:

Verified
Correct Answer:
Verified
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