Use the Following to Answer Question

question 102

Multiple Choice

Use the following to answer question:
Figure: Pricing Strategy in Cable TV Market II
-(Figure: Pricing Strategy in Cable TV Market II) Use Figure: Pricing Strategy in Cable TV Market II.If the two firms in the cable TV market collude:

• A)CableNorth will set a high price and earn $80,000,and CableSouth will set a low price and earn $130,000.
• B)CableNorth will set a low price and earn $130,000,and CableSouth will set a high price and earn $80,000.
• C)both firms will set a low price and each will earn $90,000.
• D)both firms will set a high price and each will earn $100,000.

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Definitions:

Sales Low

Refers to a period or instance when the number of products or services sold falls below expectations or past performance, often signaling a need for marketing or strategy adjustment.

Profits Negative

A financial state where a business experiences a deficit, spending more money than it is earning from its operations.

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.