Question: Please help me answer the attached file. Table me information in the table below shows the total demandfor premium-channel digital cable TV subscriptions m a
Please help me answer the attached file.

Table me information in the table below shows the total demandfor premium-channel digital cable TV subscriptions m a small urban market. Assume that each digital cable TV operator pays a xed cost of $200,000 a 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. Table 3 Quantity Price (per year) 0 $180 1500 $165 3,000 $150 4,500 $135 6,000 $120 7,500 $105 9,000 $90 10,500 $75 12,000 $60 13,500 $45 15,000 $30 16,500 $15 18,000 $ 0 38. Refer to Table 3. Assume there are two digital cable TV companies operating in this market. If they can collude on the quantity of subscriptions that will be sold and on the price that will be charged for subscriptions, then their agreement will stipulate that O A. each rm will charge a price of $90 and each rm will sell 4,500 subscriptions. 0 B. each rm will charge a price of $90 and each rm will sell 9,000 subscriptions. 0 C. each rm will charge a price of $120 and each rm will sell 3,000 subscriptions. 0 D. each rm will charge a price of $150 and each rm will sell 1,500 subscriptions
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
