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End of Chapter 3.5 Question Help Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month

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End of Chapter 3.5 Question Help Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Total Marginal Total Marginal Price Quantity Revenue Revenue Cost Cost 51 153 108 48 192 39 129 21 QUIAW 45 225 33 153 24 42 252 27 180 27 39 273 21 210 30 36 288 15 243 33 Suppose the local government imposes a $73 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $45.) O A. Comcast should shut down in the short run and produce 6 units in the long run. Incorre B. Comcast should produce 6 units in the short run and shut down in the long run. O C, Comcast should produce 6 units in the short run and in the long run. D. Comcast should shut down in the short run and in the long run. O E. None of the above. Suppose that the flat per-month tax is replaced with a tax on the firm of $3 per cable subscriber. (Assume that Comcast will sell only the quantities listed in the table). To maximize profit, Comcast will sell 5 subscriptions (enter a numeric response using an integer) and charge a price of $ 45 for profits of $

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