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Superior Cable TV buys the right to provide an exclusive movie network (HBOW) in its province. Superior pays $300,000 a year for HBOW and the
Superior Cable TV buys the right to provide an exclusive movie network (HBOW) in its province. Superior pays $300,000 a year for HBOW and the marginal cost of providing HBOW is zero. Superior's economist realizes they have two groups of customers: the 8,000 hard-core HBOW fans who will pay up to $300 a year for the exclusive network; and the 70,000 casual TV viewers who will pay up to $30 a year for HBOW. If Superior Cable TV can price discriminate, what is its maximum profit
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