ECON 101 Study Guide - Midterm Guide: Marginal Revenue, Average Variable Cost, Demand Curve
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ECON 101 Full Course Notes
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Unless a question explicitly says otherwise, assume that all market demand curves slope downward and all supply curves slope upward, there are no externalities, and firms are unable to price discriminate. Suppose that the benefit of owning the dog is worth to dick and that jane bears a cost of from the barking. Version 1: the information in the table below depicts the total demand for premium channel digital cable tv subscriptions in a small urban market. Assume that there are two digital cable tv companies operating in this market. If both of them advertise, each will earn a profit of ,000. If neither of them advertise, each will earn a profit of ,000. If one advertises and the other doesn"t, then the one who advertises will earn a profit of ,000 and the other will earn ,000. Since they are identical, each ends up producing half of the non-cooperative market outcome.