Consider the Following Information for a Regional Cable Television Service

question 120

Multiple Choice

Consider the following information for a regional cable television service provider that is a natural monopoly and has a U-shaped long-run average cost curve.(Assume the service provided is basic cable and units are household connections.) - minimum LRAC = $9.00 per month
- minimum efficient scale = 2 million units
- current output = 2.3 million units
- LRAC at current output = $10.25 per month
If this firm is currently being regulated and is following an average-cost pricing policy,the price of the service is ________ per month.

• A)less than $9.00
• B)$9.00
• C)between $9.00 and $10.25
• D)$10.25
• E)higher than $10.25

---

Definitions:

Mastery Goals

Objectives focused on developing competence or mastering a skill or subject, rather than on comparing oneself to others.

Learning Goals

Specific objectives or skills that learners aim to achieve or master over a certain period of study.

Insecure Goals

Objectives or aims that are pursued with a lack of confidence, often due to fear of failure or rejection.

Approach-Approach Conflict

A decision-making dilemma involving two desirable options, leading to conflict as the individual can only choose one.