Each problem is worth 10 points for a total of 30 points. Each of the stores gets its tapes from the same distributor of movies and all have the same stock. You as a producer in a competitie market cannot raise that price or you will lose all your customers. Show your work clearly. The following table describes the hypothetical demand and cost function for a cable TV company.
Output is the number of homes serviced in hundreds.
10.00 71.00 First notice that Marginal Cost is constant and equal to 3.5. Please convince yourself of the fact by filling in the MC column. This problem requires you to think a little. You might also want to figure out the equation of the demand curve - which may help you. But it is not absolutely not necessary.