Business, 26.09.2019 18:30 EMQPWE

Answer question 1 based on the following passage. black box cable tv is able to purchase an exclusive right to sell a premium movie channel (pmc) in its market area. let’s assume that black box cable pays $100 000 (a year) for the exclusive marketing rights to pmc. since black box has already installed cable to all of the homes in its market area, the marginal cost of pmc to subscribers is zero. the manager of black box needs to know what price to charge for the pmc service to maximize her profit. before setting price, she hires an economist to estimate demand for the pmc service. the economist discovers that there are two types of subscribers who value premium movie channels. one is the5 000 die-hard tv viewers who will pay as much as $120 a year for the new pmc premium channel. in addition, the pmc channel will appeal to about 15 000 occasional tv viewers who will pay as much as $25 a year for a subscription to pmc.1(a)if black box cable is unable to price discriminate, what price will it choose to maximize its profit and what is the amount of the profit? (b)if black box cable tv is able to price discriminate, what would be the maximum amount of profit it could generate? (c)using information above, construct the atc, demand and mc curve and show the profit this firm will be experiencing.2) suppose a monopolist firm is not supported by the government, how will the firm attempt to restrict entry of a new competitor? discuss.3) state 4 differences between a monopoly firm and a perfectly competitive firm.4) it is clear that the demand curve for items supplied by a monopoly firm is downward slopping. discuss if the elasticity of the product have any impact on the firm’s pricing power or elasticity itself shouldn’t be coming into discussion at all when it concerns a monopoly firm.

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Answer question 1 based on the following passage. black box cable tv is able to purchase an exclusiv...