Suppose that Shaw Communications has a cable monopoly in Vancouver. The following table gives Shaw's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Assume fixed costs equal $45. Price Quantity $51.00 48.00 45.00 42.00 39.00 36.00 3 4 5 6 7 8 Total Revenue $153.00 192.00 225.00 252.00 273.00 288.00 a. Suppose the local government imposes a $75 per month tax on cable companies. What will Shaw do? A. Shaw should produce 6 units in the short run and in the long run. O B. Shaw should shut down in the short run and in the long run. O C. Shaw should shut down in the short run and produce 6 units in the long run. O D. Shaw should produce 6 units in the short run and shut down in the long run. O E. None of the above. Marginal Revenue 39.00 33.00 27.00 21.00 15.00 Total Cost $108.00 129.00 153.00 180.00 210.00 243.00 Marginal Cost - 21.00 24.00 27.00 30.00 33.00