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Direct TV is deciding how to price its service. Assume there is no competition in this market. The marginal cost to Direct T assumed to

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Direct TV is deciding how to price its service. Assume there is no competition in this market. The marginal cost to Direct T assumed to be zero. The following table describes the preferences of the representative consumer Movies per year Total Willingness to Pay ($) 1 25 2 48 69 88 105 120 33 CO 144 153 10 160 11 165 12 168 13 169 14 169 favorite movies For example, the second row implies that the consumer would get $48 worth of happiness (in total) by watching his or her two If Direct TV charged a flat fee of $125 what would the consumer surplus be? Insufficient data to determine this. $44 O SO O $144 O $13

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