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 Quantity 0 3,000 6,000 9,000 12.000 15,000 18,000 Price (per year) $120 S100 S 80 $ 60 $ 40 S 20 $0 A 36. Refer to Table 16-3. If there is only one digital cable TV company in this market, what price would it charge for a premium maximize its profit? Select one 540 b. 360 S80 d. $100 Question 39 Correa Mark 10 our ofta Pag question 39. 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 How many premium digital channel cable TV subscriptions will be sold altogether when this market reachesa Nash equilibrium? Select one a 3.000 b0.000 0.000 12.000 correct The correct answers, 12.000 Question 40 correct Motor Flag question 40. 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 collide 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 resches a Nash equilibrium?

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