Refer to Scenario 13

question 58

Multiple Choice

Refer to Scenario 13.1 below to answer the question(s) that follow.
SCENARIO 13.1: The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P = 55 - 0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR = 55 - 0.02Q. Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island. It has a constant average and marginal cost of $15 for providing cable service to each household.
-Refer to Scenario 13.1. If Universal Entertainment were to be awarded the exclusive right to provide cable service on Catalina Island, how many households would it service?

• A) 2,000
• B) 2,750
• C) 4,000
• D) 5,500

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Definitions:

Life Expectancy

The average number of years an individual is expected to live, based on current mortality rates.

Literacy

The ability to read and write, and the comprehension of and proficiency in using language.

Internet Usage

involves the activities and amount of time spent by individuals or entities on the Internet, including browsing, communicating, and accessing services.

Final Goods

Products that have been processed to their final form and are ready for use by consumers or businesses, as opposed to intermediate goods used in production.