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, deadweight loss will be:
A) $0.
B) $45.
C) $70.
D) $90.
Correct Answer:

Verified
Correct Answer:
Verified
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