Consider a monopolist that sells cable subscriptions. When the price is $10 a week, it can sell 175 subscriptions. When the price is $15 a week, it can sell 100 subscriptions. The monopolist has fixed costs of $200. The MC for the provision of the cable is $6 a week. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell units at a price of and earn economic profits equal to 175; $10; $700 100; $15; $700 175; $15; $900 100; $15; $900 none of the above
Consider a monopolist that sells cable subscriptions. When the price is $10 a week, it can sell 175 subscriptions. When the price is $15 a week, it can sell 100 subscriptions. The monopolist has fixed costs of $200. The MC for the provision of the cable is $6 a week. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell units at a price of and earn economic profits equal to 175; $10; $700 100; $15; $700 175; $15; $900 100; $15; $900 none of the above
Chapter9: Monopoly
Section: Chapter Questions
Problem 7SQP
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Question
![Consider a monopolist that sells cable
subscriptions. When the price is $10 a week, it can
sell 175 subscriptions. When the price is $15 a
week, it can sell 100 subscriptions. The monopolist
has fixed costs of $200. The MC for the provision of
the cable is $6 a week. If this monopolist must
choose between selling 100 or 175 subscriptions, it
will choose to sell
units at a price of
and earn economic profits equal to
175; $10; $700
100; $15; $700
175; $15; $900
100; $15; $900
none of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbdcf240-8382-4265-9ad8-c6859fa75f80%2F6fc99e9e-3273-4439-bf2c-79efc12db7f2%2Ft6gkxhp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a monopolist that sells cable
subscriptions. When the price is $10 a week, it can
sell 175 subscriptions. When the price is $15 a
week, it can sell 100 subscriptions. The monopolist
has fixed costs of $200. The MC for the provision of
the cable is $6 a week. If this monopolist must
choose between selling 100 or 175 subscriptions, it
will choose to sell
units at a price of
and earn economic profits equal to
175; $10; $700
100; $15; $700
175; $15; $900
100; $15; $900
none of the above
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