The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster)sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero)due to excess capacity.Use this information to answer the following questions:

-If this market were a monopoly instead of a duopoly,the market price would be ________ and the quantity of streaming movie subscriptions purchased each month would be ________.
A) $0; 1,000
B) $3; 700
C) $5; 500
D) $7; 300
E) $9; 100

Question

The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster)sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero)due to excess capacity.Use this information to answer the following questions:
 
-If this market were a monopoly instead of a duopoly,the market price would be ________ and the quantity of streaming movie subscriptions purchased each month would be ________.
A) $0; 1,000 
B) $3; 700 
C) $5; 500 
D) $7; 300 
E) $9; 100

Quizplus · Accepted Answer

In a monopoly, the firm would set a higher price and produce a lower quantity compared to a competitive market or duopoly to maximize profits. Option C ($5; 500) reflects a higher price and lower quantity scenario typical of monopolistic behavior.

The Following Table Shows a Small Community's Demand for Monthly