Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria 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. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. At what level of output (number of households) is Fun Cable Company's total revenue maximized?
A. 2,500
B. 2,750
C. 5,000
D. Indeterminate from the given information.
Answer: B
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If the multiplier is 10, then the marginal propensity to consume (MPC) is
A) 9. B) 1. C) 0.9. D) 0.1.
Double taxation refers to the negative feature of
a. all businesses in the United States b. sole proprietorships c. corporations d. the federal and state tax systems e. partnerships
Which of the following is not true for a competitive firm?
A.) The marginal cost curve is the short-run supply curve. B.) The marginal cost curve is horizontal at the equilibrium price. C.) The marginal cost curve shifts downward when productivity increases. D.) The marginal cost curve shifts upward when wages increase.
The reason why a cure to a disease such as AIDS would have less elastic demand than a vaccine at every price is that
A. the vaccine would be more expensive. B. for a person with AIDS, the only alternative to the cure is death. C. for a person with AIDS, a vaccine would be more effective. D. the cure would be more expensive.