Use the Following to Answer Question

question 247

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,deadweight loss will be:

• A)$0.
• B)$45.
• C)$60.
• D)$90.

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Definitions:

Thalidomide

A drug that was once used to treat morning sickness in pregnant women but was found to cause severe birth defects when taken during pregnancy.

Birth Defects

Congenital disorders or abnormalities in structure, function, or metabolism present at birth that can lead to physical or mental disabilities.

Marijuana

A psychoactive drug from the Cannabis plant used medically or recreationally.

Neurological Disturbances

Conditions that disrupt the normal functioning of the nervous system, leading to symptoms such as paralysis, muscle weakness, or sensory disruptions.