Assume a company can offer customers cable television and Internet service at essentially zero marginal and average cost
The following table shows each customer's marginal willingness to pay for television, Internet services, and for a bundle containing both. If television and Internet services are sold separately, the profit maximizing prices are Television Internet Bundle Alex $100 $60 $160 Rebecca $80 $100 $180 A) television $100 and Internet services $60.
B) television $80 and Internet services $100.
C) television $80 and Internet services $60.
D) television $100 and Internet services $100.
C
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The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. When 170 units are produced, the firm
A) would definitely shut down. B) would incur an economic loss. C) would increase its price. D) has total costs less than $2,720.
Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price. B) a lower average cost. C) a horizontal demand function. D) a lower rate of output.