Use the Following to Answer Question

question 69

Multiple Choice

Use the following to answer question:
Figure: PPV
-(Figure: PPV) Use Figure: PPV.The figure shows the demand and marginal revenue for a pay-per-view football game on cable TV.Assume that the marginal cost and average cost are a constant $40.If the cable company is a single-price monopoly and maximizes profit,consumer surplus will be:

• A)$0.
• B)$45.
• C)$70.
• D)$90.