Comcast has a cable monopoly. The following graph shows the demand, MR, andMC curve of Comcast. Use the graph to answer questions 3 to 8.Price (P) and Costs (indollars per subscription)$25$22$21$20$19056.5MC7MRATCQ (Number of subscriptionsin millions per month) 7) Suppose the government imposes a tax of $20 million per month on cableproducers. If Comcast wants to maximize its profit, how many subscriptionsshould it sell per month?οιο οιο6 million6.5 million7 million5 million

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7) Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, how many subscriptions should it sell per month? 6 million 6.5 million 7 million 5 million

7) Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, how many subscriptions should it sell per month? 6 million 6.5 million 7 million 5 million

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 32CTQ: Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make...

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7) Suppose the government imposes a tax of $20 million per month on cable
producers. If Comcast wants to maximize its profit, how many subscriptions
should it sell per month?
οιο οιο
6 million
6.5 million
7 million
5 million

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