Use the Following to Answer Questions

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 $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.