Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 21 Jan 2018 My Price 7.00

cable TV company

Decrease in Cable Demand. Consider a cable TV company that has a fixed cost of $48 million and a marginal cost of $5 per subscriber. The company is regulated with an average-cost pricing policy.

a. The first two columns of the following table show three points on the initial demand curve. For example, at a price of $15 the quantity demanded is six million subscribers. For each $2 reduction in price, the number of subscribers increases by one million. Fill in the blanks in the following table. The regulated price is____________________ .

b. Suppose the demand for the product decreases, with the demand curve shifting to the left by one million subscribers. Fill in the blanks in the following table. The new regulated price is $ .__________

 

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Maurice Tutor
(5)
Status NEW Posted 21 Jan 2018 12:01 AM My Price 7.00

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