Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Sox cable is a monopolist supplying cable TV and internet services The demand function for...

Sox cable is a monopolist supplying cable TV and internet services The demand function for Sox cable services

Sox cable is a monopolist supplying cable TV and internet services. The demand function for Sox cable services is given by: S-200p-3 where is the quantity of Sox services, P is the price, and R is a measure of the reliability of service. The cost of producing cable services depends both on the quantity of services provided and the reliability of services. Sox's cost function is: C= 3 + 3 C-45 2R (a) What is the price elasticity of demand for Sox cable services? Is it constant over all prices? Does it depend on the reliability of service? (b) Find the profit-maximizing price of cable services. HINT: Express marginal revenue as a function of price (the price elasticity of demand should be in this function). (c) Using the profit-maximizing price, write the quantity demanded of Sox services as a function of reliability. (d) Using the expression for quantity as a function of reliability, write Sox's profit as a function of reliability.

Feb 01 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions