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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 TV is assumed

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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 TV is assumed to be zero. The following table describes the preferences of the representative consumer Movies per year Total Willingness to Pay ($) 25 48 69 88 105 120 133 144 153 160 165 168 169 169 For example, the second row implies that the consumer would get $48 worth of happiness (in total) by watching his or her two favorite movies If Direct TV charged a flat fee of $125 what would its incremental profit be in c on with the optimal pay-per-vie (simple) pricing? $125 They are identical 10 325

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