N3

Suppose a local cable company provides cable service to a rural community. The figure to the right illustrates the cable company's 120 MC marginal cost of providing cable service along with the community's demand for cable TV. Assume the local cable company is a monopoly. When the company maximizes profits, consumer surplus equals 5 200 (enter a numeric response using a real number rounded to one decimal place), and producer surplus equals $ 600 Price and cost (dollars per cable subscription) OR. 9. 4 .5 6 8 8 3 8 8 8 6 Compared to the perfectly competitive market outcome, the cable company creates dead weight loss equal to S MR D 10 20 30 40 50 60 70 80 90 100 Quantity of cable subscriptions