Use the Following to Answer Question

question 151

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,deadweight loss will be:

• A)$180.
• B)$100.
• C)$40.
• D)$0.

---

Definitions:

Indirect Expense

Costs that are not directly linked to the production of goods or services but are necessary for the business's day-to-day operations, such as utilities and rent.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, recognizing it as an expense.

Property

Assets owned by an individual or business, encompassing real estate, personal property, and intellectual property rights.

Net Income

When revenue totals more than expenses, the result is net income.