Price and cost (dollars per subscription) 64.00 .... 58.00 48.40 40.00 MR MC ATC D 32 80 Quantity of cable subscriptions (per month in thousands) Q Q

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Price and cost (dollars per subscription)
64.00
58.00
48.40
40.00
MR
MC
ATC
D
32
80
Quantity of cable subscriptions (per month in thousands)
Q
Transcribed Image Text:Price and cost (dollars per subscription) 64.00 58.00 48.40 40.00 MR MC ATC D 32 80 Quantity of cable subscriptions (per month in thousands) Q
K
The graph to the right depicts the demand for cable subscriptions from a local cable company along with the
average total cost and marginal cost of producing cable subscriptions. Suppose the local cable company is a
monopoly.
What is the profit-maximizing quantity of cable subscriptions? thousand subscriptions per month. (Enter a
numeric response using an integer.)
What is the corresponding profit-maximizing price? $ per subscription. (Enter a numeric response using a
real number rounded to two decimal places.)
Calculate the local cable company's profits. $thousand per month. (Enter a numeric response using a real
number rounded to two decimal places.)
Transcribed Image Text:K The graph to the right depicts the demand for cable subscriptions from a local cable company along with the average total cost and marginal cost of producing cable subscriptions. Suppose the local cable company is a monopoly. What is the profit-maximizing quantity of cable subscriptions? thousand subscriptions per month. (Enter a numeric response using an integer.) What is the corresponding profit-maximizing price? $ per subscription. (Enter a numeric response using a real number rounded to two decimal places.) Calculate the local cable company's profits. $thousand per month. (Enter a numeric response using a real number rounded to two decimal places.)
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