Related to Application: Satellite v CableLOADING... Consider a cable TV company. For fewer quantities of cable TVs produced, the average-cost curve is negatively sloped and marginal cost is less than average cost. The demand and marginal revenue curves of the company are linear. The cable TV company's profit-maximizing price and output are obtained at a point where marginal revenue is equal to greater than less than marginal cost. Part 2 The entry of satellite TV in the market will shift the cable TV company's demand curve to the right left and its marginal revenue curve to the right left . Part 3 The entry of a satellite TV firm decreases increases the profit-maximizing output of cable TV and increases decreases its profit-maximizing price