Scenario 17-2 ​

question 57

Short Answer

Scenario 17-2
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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 17-2. If the telecommunications provider is able to use tying to price high speed internet access and cable television, what is the profit-maximizing price to charge for the "tied" good?

Understand the concept and implications of third-party beneficiary contracts.

Recognize the parties involved in a contract and their respective roles and responsibilities.

Identify key legal principles from landmark cases related to contract law.

Understand the process and requirements for the assignment and delegation of contractual rights and duties.

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Definitions:

Human Relations

The study and management of how people interact within groups, particularly in a work setting, aiming to improve job satisfaction and productivity.

Personal Development

Activities that improve awareness, talents, and potential, contributing to building human capital and employability.

Organizational Objectives

The specific, measurable goals that an organization aims to achieve to fulfill its mission and advance its strategic plan.

Total Quality Management (TQM)

An organization-wide approach aiming at continuous improvement of all processes, products, services, and culture to achieve long-term success through customer satisfaction.