A Cable TV Company Charges $\$ 24$ For the Basic Service Plus

question 239

Multiple Choice

A cable TV company charges $\$ 24$ for the basic service plus $\$ 8$ for each movie channel. Let y be the total cost in dollars of subscribing to cable TV, using $x$ movie channels. Find the slope-intercept form of the equation.

• A) \(y = 24 x + 8\)
• B) \(y = 24 x - 8\)
• C) \(y = 8 x + 24\)
• D) \(y = 8 x - 24\)

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Definitions:

Product Differentiation

Making a product or service stand out to a particular target market by distinguishing it from competitors.

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit from their activities.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Downward-Sloping Demand

A concept in economics that illustrates how demand for a good or service decreases as the price increases, assuming all other factors remain constant.