Scenario 17-6 Assume That a Local Telecommunications Company Sells High Speed Internet

question 279

Short Answer

Scenario 17-6
Assume that a local telecommunications company sells high speed internet access and cable television. The company's only two customers are Taylor and Tim. Taylor is willing to pay $50 per month for high speed internet access and $50 per month for cable television. Tim is willing to pay only $20 per month for high speed internet access, but is willing to pay $70 per month for cable television. Assume that the telecommunications company can provide each of these products at zero marginal cost.
-Refer to Scenario 17-6. If the telecommunications company is unable to use tying, what is the profit-maximizing price to charge for high speed internet access?

---

Definitions:

Dispositional Approach

A perspective in psychology that focuses on an individual's inherent qualities or traits in explaining their behavior.

Stable Traits

Stable Traits are enduring characteristics or qualities that remain consistent across different situations and over time, forming the foundation of an individual's personality.

Trait Activation Theory

A psychological theory proposing that certain situations can activate specific traits which then influence behavior.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotional patterns, contributing to their unique personality.