Refer to Scenario 13

question 357

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, what price would it charge per household per month?

• A) $15.00
• B) $27.50
• C) $35.00
• D) $55.00

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Definitions:

Cardiac Muscle

Muscle tissue found only in the heart, characterized by its ability to contract involuntarily and rhythmically.

Tetanic Contractions

Sustained muscle contractions that occur when the muscles do not relax between stimuli, leading to a smooth and steady contraction.

Depolarization

The process in which a cell's membrane potential becomes less negative, leading towards an action potential in nerve and muscle cells.

Heart Rate

is the number of heartbeats per unit of time, usually per minute, indicating cardiovascular fitness and overall health.