Answered: The table gives the monthly demand and…

The table gives the monthly demand and costs for subscriptions to basic cable for Comcast, a cable television monopoly in Philadelphia. If Comcast maximizes its profit, how much profit will it earn?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section13.1: Factor Market

Problem 2ST

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Concept explainers

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.

Question

The table gives the monthly demand and costs for subscriptions to basic cable for Comcast, a cable television monopoly in Philadelphia. If Comcast maximizes its profit, how much profit will it earn?

Marginal
Revenue
Price
Quantity
Total Revenue
Total Cost Marginal Cost
$17
3
$51
$56
www.
16
4.
64
$13
63
$7
15
75
11
71
8
14
84
80
13
7
91
7
90
10
12
96
101
11

Definition Definition Market structure in which a single company dominates the entire industry. In a monopoly market, there are no close substitutes for the goods and services offered by the monopoly.

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