Table 17-5 The Information in the Table Below Shows the Total Demand

question 13

Multiple Choice

Table 17-5
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $200,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.
-Refer to Table 17-5. If there is only one digital cable TV company in this market, what price would it charge for a premium digital channel subscription to maximize its profit?

• A)$30
• B)$60
• C)$90
• D)$150

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Definitions:

Anxiety Disorders

Psychiatric conditions characterized by overwhelming and persistent feelings of anxiety and fear that interfere with daily living.

Cost-Effective

Referring to a process, product, or service that delivers optimal value or benefit for the money spent.

Prescribe Drugs

The act of medically recommending specific medications to treat or manage a health condition by a licensed healthcare professional.

Clinical Psychology

The branch of psychology focused on diagnosing and treating mental, emotional, and behavioral disorders.