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

question 514

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. Assume there are two profit-maximizing digital cable TV companies operating in this market. Further assume that they are able to collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions. How much profit will each company earn, given that the two firms split the market equally?

• A)$610,000
• B)$550,000
• C)$405,000
• D)$205,000

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Definitions:

Sexual Health

A state of physical, emotional, mental, and social well-being in relation to sexuality; it encompasses a positive and respectful approach to sexuality and sexual relationships.

Cultural Patterns

Refers to the recurring habits and norms that characterize the way of life and social relations of a particular community or society.

Follicular Phase

The phase of the menstrual cycle during which follicles in the ovary mature, ending with ovulation; it is marked by the thickening of the uterine lining and an increase in estrogen levels.

Endometrium

The mucous membrane lining the interior of the uterus, which thickens during the menstrual cycle in preparation for possible implantation of an embryo.