Refer to Scenario 13

question 71

Multiple Choice

Refer to Scenario 13.2 below to answer the question(s) that follow.
SCENARIO 13.2: The government of Stratospheria 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. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.
-Refer to Scenario 13.2. What is the most Fun Cable Company would bid for the franchise?

• A) $0
• B) $62,500
• C) $75,000
• D) $112,500

---

Definitions:

Speakers Notes

Notes prepared for a speaker to refer to during a presentation, often outlining key points or statistics.

Notes Button

A user interface element that allows the user to create, view, or manage notes within an application.

Presenter View

A feature in presentation software that provides the speaker with a private view of the presentation slides, notes, and timing, while displaying only the slides to the audience.

Slide Show

A presentation of a series of images or pages, often displayed on a screen one after the other, typically with automatic progression or user control.