Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 39 36 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost 21 24 27 30 33
Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 39 36 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost 21 24 27 30 33
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 7P
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