The figure above shows the demand curve (D) faced by Visual, Inc, a cable TV company, and the firm's marginal revenue (MR), marginal cost (MC), and average cost (LRAC) curves
If Visual is regulated according to the social interest theory, it will serve ________ million households and set a price of ________ per household per month. A) 2; $12
B) 3; $24
C) 4; $12
D) 2; $36
C
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If View Your World, a high-end window manufacturer, has contracted with a supplier to produce their glass, this is an example of ________.
A) outsourcing B) forward integration C) backward integration D) a market transaction
Under a rule of reason approach, an act is illegal:
a. only if it is shown to result in an anticompetitive outcome. b. if two parties merge. c. if a firm engages in price discrimination. d. if two firms engage in price fixing. e. if two firms undertake a joint venture
A bank's "required reserves" are:
a. held as deposits with the Federal Reserve System. b. equal to its checkable deposits. c. equal to its transactions deposits. d. none of these.
When the quality of a good deteriorates while its price remains the same, the purchasing power of the dollar
a. increases, so the CPI overstates the change in the cost of living if the quality change is not accounted for. b. increases, so the CPI understates the change in the cost of living if the quality change is not accounted for. c. decreases, so the CPI overstates the change in the cost of living if the quality change is not accounted for. d. decreases, so the CPI understates the change in the cost of living if the quality change is not accounted for.