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, how many households would it service?
A. 2,000
B. 2,750
C. 4,000
D. 5,500
Answer: A
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What will be an ideal response?
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Which of the following statements is true?
A) Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B) Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C) Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D) a and c E) b and c