Business, 17.09.2021 23:40 latezwardjr15

Suppose that News Corporation, which controls the United States’ largest satellite-to-TV broadcaster, is contemplating launching a Spaceway satellite that could provide high speed Internet service. Prior to launching the Spaceway satellite, suppose that News Corporation used least squares to estimate the regression line of demand for satellite Internet services. The best-fitting results indicate that demand is Qdsat = 152.5 − 0.8Psat + 1.2PDSL + 0.5Pcable (in thousands), where Psat is the price of satellite Internet service, PDSL is the price of DSL Internet service, and Pcable is the price of high-speed cable Internet service. The price of DSL, PDSL, is $25 per month and the monthly price of high-speed cable Internet, Pcable, is $50. Furthermore, News Corporation has identified that its monthly revenues need to be at least $15 million to cover its monthly costs. If News Corporation set its monthly subscription price for satellite Internet service at $55, how much revenue would it earn?

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