Help with Microeconomics, Oligopoly. Picture posted. The answer to #71 is D, 12,

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Help with Microeconomics, Oligopoly. Picture posted. The answer to #71 is D, 12,000. Could someone explain why that is?

Table 16-3 The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero uantit 0 3,000 6,000 9,000 12,000 15,000 18,000 Price (per vear $120 $100 80 60 $ 40 20 $0 70. Refer to Table 16-3. Assume that there are two profit-maximizing digital cable TV companies operating in this market. Further assume that they are able to collude on the price and quantity of premium digital channel subscriptions to sell. As part of their collusive agreement they decide to take an equal share of the market. How much profit will each company make? a. $40,000 b. $170,000 c. $480,000 d. $540,000 Refer to Table 16-3. Assume that there are two profit-maximizing digital cable TV companies operating in this market. Further assume that they are not able to collude on the price and quantity of premium digital channel subscriptions to sell. How many premium digital channel cable TV subscriptions will be sol

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Help with Microeconomics, Oligopoly. Picture posted. The answer to #71 is D, 12,

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