Table 10-3 Assume Table 10-3 Gives the Monthly Demand and Costs for Quantity

Table 10-3
$\begin{array}{|c|c|c|c|c|c|}\hline \text { Price } & \text { Quantity } & \begin{array}{l}\text { Total } \\\text { Revenue }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Revenue }\end{array} & \text { Total Cost } & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} \\\hline \$ 17 & 3 & \$ 51 & \cdots & \$ 56 & \cdots \\\hline 16 & 4 & 64 & \$ 13 & 63 & \$ 7 \\\hline 15 & 5 & 75 & 11 & 71 & 8 \\\hline 14 & 6 & 84 & 9 & 80 & 9 \\\hline 13 & 7 & 91 & 7 & 90 & 10 \\\hline 12 & 8 & 96 & 5 & 101 & 11 \\\hline\end{array}$ Assume Table 10-3 gives the monthly demand and costs for subscriptions to basic cable for Comcast, a cable television monopoly in Philadelphia.
-Refer to Table 10-3.If Comcast wants to maximize its profits,what price (P) should it charge and how many cable subscriptions per month (Q) should it sell?

A) P = $12; Q = 8
B) P = $14; Q = 6
C) P = $16; Q = 4
D) P = $15: Q = 5

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free