-The Above Figure Shows the Demand for Cable and the Cable

question 596

Essay

-The above figure shows the demand for cable and the cable company's cost of providing cable.
a) What price and quantity will be produced if the company is unregulated and profit maximizes?
b) What price and quantity will be produced if the company is regulated using the marginal cost pricing rule?
c) What is the advantage of the marginal cost pricing rule?
d) What price and quantity will be produced if the company is regulated using the average cost pricing rule?
e) What is the advantage of the average cost pricing rule?

---

Definitions:

Dissenters

Individuals who express opposition to the majority opinion, which can lead to social change or conflict.

Self-Confident

Having a strong belief in one's own abilities and competence.

Willing To Compromise

The readiness of an individual or party to make concessions to reach a mutual agreement or resolve a conflict.

Ingroup

A group to which an individual belongs and identifies with, often leading to favoritism towards member and bias against outgroup members.