Use the following to answer questions:
Figure: PPV
-(Figure: PPV) Look at the figure PPV, which shows the demand and marginal revenue for a pay-per-view football game on cable TV. Assume that the marginal cost and average cost are a constant $40. If the cable company practices perfect price discrimination, then it will sell _____ subscriptions.
A) 10
B) 8
C) 6
D) 0
Correct Answer:
Verified
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Figure: PPV
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