Refer to Scenario 13.1 below to answer the question(s) that follow. SCENARIO 13.1: The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P = 55 - 0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR = 55 - 0.02Q. Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island. It has a constant average and marginal cost of $15 for providing cable service to each household.Refer to Scenario 13.1. If Universal Entertainment were to be awarded the exclusive right to provide cable
service on Catalina Island, what price would it charge per household per month?
A. $15.00
B. $27.50
C. $35.00
D. $55.00
Answer: C
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Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.
A student wrote: "Monopolistic competition is a market structure in which a small number of firms compete by making an identical product." If you were the instructor, how would you correct this statement?
What will be an ideal response?
What happens in the secondary market?
A) a corporate financial manager will raise funds for expansion of the firm B) secondary inputs like electricity are sold C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another
Refer to Figure 11-1. Diminishing marginal productivity sets in after
A) the 2nd worker is hired. B) the 3rd worker is hired. C) the 4th worker is hired. D) the 5th worker is hired.