13. Gouge-em Cable Company is the only cable television and Internet service company licensed to operate in Backwater County. Most of its costs are access fees and maintenance expenses. These fixed costs total $6,400,000 monthly. The marginal cost of adding another subscriber to its system is constant at $20 per month. Gouge-em's demand curve can be determined from the data in the accompanying table. NUMBER OF SUBSCRIBERS Subscription Price (PER MONTH) $250 20,000 200 40,000 150 60,000 100 80,000 50 100,000 10 150,000

13. Gouge-em Cable Company is the only cable television and Internet service company licensed to operate in Backwater County. Most of its costs are access fees and maintenance expenses. These fixed costs total $6,400,000 monthly. The marginal cost of adding another subscriber to its system is constant at $20 per month. Gouge-em's demand curve can be determined from the data in the accompanying table. NUMBER OF SUBSCRIBERS Subscription Price (PER MONTH) $250 20,000 200 40,000 150 60,000 100 80,000 50 100,000 10 150,000

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 13CQ

See similar textbooks

Similar questions

Gouge-em Cable Company is the only cable television servicecompany licensed to operate in Backwater County. Most of itscosts are access fees and maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of addinganother subscriber to its system is constant at $2 per month.Gouge-em’s demand curve can be determined from the datain the accompanying table. a. What price will Gouge-em charge for its cable services?What are its profits at this price?b. Now suppose the Backwater County Public UtilityCommission has the data and believes that cablesubscription rates in the county are too expensive and thatGouge-em’s profits are unfairly high. What regulated pricewill it set so that Gouge-em makes only a normal rate ofreturn on its investment?
The following data describe the firm's monthly demand and monthly costs for a manufacturer of electronic components. 1. Complete the following cost and revenue schedules for this company. Total Average Marginal Marginal Cost per Variable Variable Average Price per Cost per Total Cost Revenue per Cost for Quantity of boxes of per box of box of 1000 units Total box of 1000 box of units Fixed Total box of Revenue units 1000 units 1000 units produced Cost Cost 1000 units 1000 units $0 $800 $800 $1,700 $1,575 $1,450 $1,325 1 $1,028 $1,074 $1,117 $1,184 $1,303 2 3 4 5 $1,200 6. $1,075 $950 $1,498 7 $1,753 8 $825 $2,103 (a) What is the profit maximizing (or loss minimizing) quantity of boxesthat this company should supply? Why? (b) What price will the company charge? How is this price determined? Will this result in economic profits? (c) If the company charged a higher price than what you found in (b) above, what would happen? (d) What market structure do you think this company participates…
6.
Problem 11-04 (algo) ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your irm have determined that group 1's elasticity of demand is -5, while group 2's is -2. Your marginal cost of producing the product is 630 a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2 $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. ?At least one group has elasticity of demand greater than 1 in absolute value. ?At least one group has elasticity of demand less than one in absolute value.…
You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
2. You have developed a self-study certification system for those who need credit hours for recertification by your state's social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sale information: Online Self Study Certifications for Social Work License Certification Certification in Online Counseling as a Group Home Counselor TR Counseling TR Group Home Segment 1 Segment 2 Segment 3 Segment 4 Customers 1000 1000 1000 $190 $150 $95 1000 $35 $70 $90 $160 $195 Bundle $260 $240 $255 $230 TR Bundle
Forty thousand potential customersof a cable TV franchise are each willing to pay $11/month for HBO and $11/month for Cinemax. Twenty thousand potential customers are willing to pay $20/month for HBO and only $5/month for Cinemax. Assume costs are zero. If the franchise sells the two services in a bundle, it should charge1: $312: $253: $224: $205: $18
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees and maintenance expenses. These fixed costs total $320,000 monthly. The marginal cost of adding another subscriber to its system is constant at $6 per month. Gouge-em's demand curve can be determined from the data in the accompanying table. Complete the following table by computing the total revenue, total cost, and profit at each of the various subscription prices. Total Revenue ($, Thousands) $ Fixed Cost ($, Thousands) $320 $ $ $ $ $ Number of Subscribers Subscription Price (Thousands Per Month) $25 20 ! 15 10 O O O 5 1 Gouge-em will charge $5 $10 20 $15 40 60 80 $20 100 150 for its cable services, earning them a profit of $ $320 $320 $320 $320 $320 Now suppose the Backwater County Public Utility Commission has the data and believes that cable subscription rates in the county are too expensive and that Gouge-em's profits are unfairly high.…
A restaurant owner is trying to decide whether tostay open at lunchtime. She has far fewer customers at lunch than at dinner, and the revenue shebrings in barely covers her expenses to buy foodand pay the staff. What do you recommend thatshe do? Explain your reasoning to her
Price (dollars per jacket) 888888 180 160 140 120 100 60 40 20 0 80 160 MC profit; $13,000 profit; $7,200 Oloss; $8,000 In the figure above, Gap's economic loss: $13,000 ATC The figure shows the demand curve for Gap jackets (D), and Gap's marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). MR 240 320 400 Quantity (jackets per day)
Please give me proper calculation and full explanation otherwose i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.