Table 16-3 The Information in the Table Below Shows the Total Demand

question 193

Multiple Choice

Table 16-3
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 $100,000 (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 16-3.Assume that there are two profit-maximizing digital cable TV companies operating in this market.Further assume that they are not able to collude on the price and quantity of premium digital channel subscriptions to sell.What price will premium digital channel cable TV subscriptions be sold at when this market reaches a Nash equilibrium?

• A)$40
• B)$60
• C)$80
• D)$100

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Definitions:

Subclavian Veins

Major veins located under the clavicle (collarbone) responsible for draining blood from the upper extremities back to the heart.

Brachiocephalic Veins

Large veins that receive blood from the head, neck, and upper limbs and transport it back to the heart.

Great Saphenous Vein

The Great Saphenous Vein is the longest vein in the human body, running along the length of the lower limb.

Longest Vein

The Great Saphenous Vein, which extends from the foot to the upper thigh, is the longest vein in the human body.