table 15 - 3\n| price | quantity | total revenue | marginal revenue | total cost | marginal cost |\n| ---- |…

table 15 - 3\n| price | quantity | total revenue | marginal revenue | total cost | marginal cost |\n| ---- | ---- | ---- | ---- | ---- | ---- |\n| $17 | 3 | $51 | ---- | $56 | ---- |\n| 16 | 4 | 64 | $13 | 63 | $7 |\n| 15 | 5 | 75 | 11 | 71 | 8 |\n| 14 | 6 | 84 | 9 | 80 | 9 |\n| 13 | 7 | 91 | 7 | 90 | 10 |\n| 12 | 8 | 96 | 5 | 101 | 11 |\nassume table 15 - 3 gives the monthly demand and costs for subscriptions to basic cable for comcast, a cable television monopoly in philadelphia.\nrefer to table 15 - 3. if comcast maximizes its profits how much profit will it earn?\n$84\n$4\n$40\ncomcast will break even.

table 15 - 3\n| price | quantity | total revenue | marginal revenue | total cost | marginal cost |\n| ---- | ---- | ---- | ---- | ---- | ---- |\n| $17 | 3 | $51 | ---- | $56 | ---- |\n| 16 | 4 | 64 | $13 | 63 | $7 |\n| 15 | 5 | 75 | 11 | 71 | 8 |\n| 14 | 6 | 84 | 9 | 80 | 9 |\n| 13 | 7 | 91 | 7 | 90 | 10 |\n| 12 | 8 | 96 | 5 | 101 | 11 |\nassume table 15 - 3 gives the monthly demand and costs for subscriptions to basic cable for comcast, a cable television monopoly in philadelphia.\nrefer to table 15 - 3. if comcast maximizes its profits how much profit will it earn?\n$84\n$4\n$40\ncomcast will break even.

Answer

Explanation:

Step1: Recall profit - maximization condition

A monopolist maximizes profit where marginal revenue (MR) equals marginal cost (MC). Looking at the table, MR = MC = 9 when the quantity is 6.

Step2: Calculate profit formula

Profit ($\pi$) is calculated as total revenue (TR) minus total cost (TC). When quantity = 6, TR = 84 and TC = 80.

Step3: Compute profit

$\pi=TR - TC=84 - 80 = 4$

Answer:

$4$