Business
Business, 19.08.2020 09:01, huwoman

The accompanying table shows a small communityâs demand for monthly subscriptions to a streaming movie service. Assume that only two firms (Nextflix and Flixbuster) sell in this market, that each firm offers the same quality of service and movie selection, and that each firmâs marginal cost is constant and equal to 0 (zero). Furthermore, fixed costs are also assumed to be zero. Use this information to answer the question below. Price/Month (P) Number of Customers (Q) Total Revenue/Month (TR)$10 0 $0$9 100 $900$8 200 $1,600$7 300 $2,100$6 400 $2,400$5 500 $2,500$4 600 $2,400$3 700 $2,100$2 800 $1,600$1 900 $900$0 1,000 $0Listed below are four different collusive agreements that Nextflix and Flixbuster are considering. Assuming both firms will abide by the terms, which collusive agreement(s) would maximize total profit in the market?I. Nextflix supplies 400 subscriptions and Flixbuster supplies 500 subscriptions. II. Nextflix supplies 500 subsciptions and Flixbuster supplies 300 subscriptions. III. Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions. IV. Nextflix supplies 100 subscriptions and Flixbuster supplies 400 subscriptions. A. agreement IB. agreements I and IIC. agreement IVD. agreements II and IIIE. agreements III and IV

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