Refer to Scenario 13

question 58

Multiple Choice

Refer to Scenario 13.1 below to answer the question(s) that follow.
SCENARIO 13.1: The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P = 55 - 0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR = 55 - 0.02Q. Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island. It has a constant average and marginal cost of $15 for providing cable service to each household.
-Refer to Scenario 13.1. If Universal Entertainment were to be awarded the exclusive right to provide cable service on Catalina Island, how many households would it service?

• A) 2,000
• B) 2,750
• C) 4,000
• D) 5,500

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Definitions:

Cabinet Oblique

A form of oblique projection used in technical drawing where the receding lines are drawn half as long as they are in reality to reduce the distortion of the angle.

Receding Axis

An imaginary line that moves away from the observer, often used in technical drawing to illustrate depth or perspective.

True Size

The accurate, intended size of a feature as defined by its dimensions without any tolerance applied.

Oblique Pictorial

A form of pictorial drawing in which the object is presented at a tilt to reveal details, with one face shown in true scale and the others angled.