Use the Following to Answer Question

question 76

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 practices perfect price discrimination,producer surplus will be:

• A)$180.
• B)$100.
• C)$40.
• D)$0.

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Definitions:

Suppliers

Suppliers are businesses or individuals that provide goods or services to another entity, under specified terms, usually through a contract.

Just-In-Time (JIT)

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.

Manufacturing Firms

Entities engaged in the industrial production of goods, transforming raw materials into finished products for distribution.

Demand-Pull

A production strategy where production is based on customer demand, pulling products through the manufacturing process to meet specific orders.