Question 1
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow.
Refer to Figure 13.10. If the government imposed a price ceiling of $12 on this firm, the firm would sell to
◦ 1,000 subscribers and earn a profit of $4,000.
◦ more than 2,500 subscribers so that price would equal average total cost.
◦ 2,500 subscribers but would require a subsidy of $1,250 to stay in business.
◦ 2,200 subscribers and would require a subsidy of $2,200 to stay in business.
Question 2
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow.
Refer to Figure 13.10. The monopoly profit-maximizing number of subscribers and price are ________ and ________, respectively.
◦ 800; $15.
◦ 1,000; $16.
◦ 2,200 $13.
◦ 2,500; $12.
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