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.Assume that there are two digital cable TV companies operating in this market.If they are able to collude on the price and quantity of subscriptions to sell,what price (P) will they charge,and how many subscriptions (Q) will they sell collectively?
A) P = $40, Q = 12,000
B) P = $60, Q = 9,000
C) P = $80, Q = 6,000
D) P = $100, Q = 3,000
Correct Answer:
Verified
Correct Answer:
Verified
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