ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose a cable company provides cable service to a small town. The total revenue, marginal revenue, total cost, and marginal cost of providing various quantities of cable subscriptions (units in
thousands per month) are presented in the table below.
Quantity
0
1
2
3
4
5
6
Price
202
200
198
196
194
192
190
Total Revenue
$0
200
396
588
776
960
1140
Assume the local cable company is a monopoly. To maximize profits, the monopoly should produce
At that level of output, the cable company will earn economic profits of $
(thousand per month).
Marginal Revenue
200
196
192
188
184
180
Total Cost
0
180
270
330
420
660
960
Marginal Cost
180
90
60
90
240
300
(thousand) units. (Enter a numeric response using an integer.)
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Transcribed Image Text:Suppose a cable company provides cable service to a small town. The total revenue, marginal revenue, total cost, and marginal cost of providing various quantities of cable subscriptions (units in thousands per month) are presented in the table below. Quantity 0 1 2 3 4 5 6 Price 202 200 198 196 194 192 190 Total Revenue $0 200 396 588 776 960 1140 Assume the local cable company is a monopoly. To maximize profits, the monopoly should produce At that level of output, the cable company will earn economic profits of $ (thousand per month). Marginal Revenue 200 196 192 188 184 180 Total Cost 0 180 270 330 420 660 960 Marginal Cost 180 90 60 90 240 300 (thousand) units. (Enter a numeric response using an integer.)
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