In a Particular Town, Comvision and Veriview Are the Only

question 437

Multiple Choice

In a particular town, Comvision and Veriview are the only two providers of cable TV service. Comvision and Veriview constitute a

• A)duopoly, whether they collude or not.
• B)cartel, whether they collude or not.
• C)Nash industry, whether they collude or not.
• D)monopolistically competitive market if they charge the same price.

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Definitions:

Economic Profit

The disparity between overall income and combined expenses, encompassing both direct and indirect costs.

Widgets

A generic term often used to represent a hypothetical product in economics and business discussions.

Opportunity Cost

The cost of missing out on the second-best option while choosing between two mutually exclusive options in a decision-making process.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.