Amanda Inherited the Only Local Cable TV/Internet Company in Town

question 282

Multiple Choice

Amanda inherited the only local cable TV/Internet company in town after her father passed away. The company has a local monopoly on the delivery of high-speed Internet service. The company is completely unregulated by the government and is therefore free to operate as it wishes. Assume that Amanda understands the true power of her new monopoly. Which of the following statements is (are) correct? (i)
She will be able to set the price of high-speed Internet service at whatever level she wishes.
(ii)
The customers will be forced to purchase high-speed Internet service at whatever price she wants to set.
(iii)
She will be able to achieve any profit level that she desires.

• A)(i) only
• B)(ii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Some Statistics

Refers to specific numerical data or quantitative information related to a study or analysis.

Television Set

An electronic device designed to receive broadcast or cable signals and display television programming.

Probability

An indicator quantifying the chance of an event happening, with its value ranging between 0 and 1.

Favorite Colour

A person's most preferred color, often reflecting their personality or aesthetic preferences.