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Question 251

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Use the following to answer questions:
Figure: PPV 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 $40. If the cable company is a single-price monopoly, to maximize profit it will sell _____ subscriptions and charge _____ per subscription. A) 8; $20 B) 6; $40 C) 3; $70 D) 2; $80
-(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 $40. If the cable company is a single-price monopoly, to maximize profit it will sell _____ subscriptions and charge _____ per subscription.


A) 8; $20
B) 6; $40
C) 3; $70
D) 2; $80

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