Multiple Choice
Use the following to answer questions:
Scenario: A Small-Town Monopolist
A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and an additional 75 subscriptions when the price is $10 a week. The MC for the provision of the cable is $5 a week. There are no fixed costs.
-(Scenario: A Small-Town Monopolist) Look at the scenario A Small-Town Monopolist. If this monopolist chooses to sell subscriptions at one price, it will sell _____ units at a price of _____ and earn economic profits equal to _____.
A) 75; $10; $500
B) 100; $15; $1,000
C) 175; $15; $1,000
D) 100; $10; $750
Correct Answer:

Verified
Correct Answer:
Verified
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