Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the quality of cable TV service increases, then consumer surplus (in the cable TV market):
A. increases.
B. decreases.
C. drops to zero.
D. becomes negative.
Answer: A
You might also like to view...
Refer to Table 4-4. If a minimum wage of $9.50 is mandated there will be a
A) shortage of 20,000 units of labor. B) surplus of 10,000 units of labor. C) shortage of 10,000 units of labor. D) surplus of 20,000 units of labor.
If Happy Feet chooses to Ad and Best Nails then chooses to Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $1
B) $1; $4
C) $5; $1
D) $2; $3
A monopolist will stop production when MR equals MC
a. True b. False Indicate whether the statement is true or false
Suppose an early freeze decreases the supply of oranges. The equilibrium quantity in this market will not change after the change in supply if the demand curve were: a. perfectly horizontal. b. perfectly vertical
c. downward sloping. d. upward sloping.