Refer to Scenario 13

question 133

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 much profit would it earn?

• A) $0
• B) $40,000
• C) $70,000
• D) $80,000

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Definitions:

Unconditioned Stimuli

In classical conditioning, a stimulus that innately and instinctively elicits a reaction without any previous learning.

Negative Reinforcers

Stimuli that, when removed after a particular behavior, increase the likelihood of that behavior being repeated in the future.

Cumulative Recorder

A device used in behavioral psychology to record the frequency of behaviors over time, creating a graphical representation.

Graphic Record

A visual representation of data or information, usually in the form of charts, graphs, or diagrams.