Multiple Choice
Table 16-3
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.
-Refer to Table 16-3.If there is only one digital cable TV company in this market,what price would it charge for a premium digital channel subscription to maximize its profit?
A) $40
B) $60
C) $80
D) $100
Correct Answer:
Verified
Correct Answer:
Verified
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