The above figure shows the demand for cable and the cable company's cost of providing cable
a. What price and quantity will be produced if the company is unregulated and profit maximizes?
b. What price and quantity will be produced if the company is regulated using the marginal cost pricing rule?
c. What is the advantage of the marginal cost pricing rule?
d. What price and quantity will be produced if the company is regulated using the average cost pricing rule?
e. What is the advantage of the average cost pricing rule?
a. The price will be $90 per month and the quantity will be 20,000 households.
b. The price will be $30 per month and the quantity will be 40,000 households.
c. This rule results in the efficient level of production.
d. The price will be $60 per month and the quantity will be 30,000 households.
e. This rule results in the firm making a normal profit.
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Equilibrium, in the short run, is achieved when:
a. differences in rates of return cause investors to purchase and sell currency and thereby change the spot rate of exchange. b. the government recognizes a problem and takes action to correct it. c. traders adjust their expectations to match reality. d. inflation falls to zero.
Bob's Barber Shop cut 3,000 heads of hair in 2014 and 3,100 in 2015. The price of a haircut was $7 in 2014 and $8 in 2015. If 2014 is the base year, what was Bob's contribution to real GDP in 2015?
A. $21,700 B. $24,000 C. $24,800 D. $21,000