Which of the Following Is TRUE

question 258

Multiple Choice

Which of the following is TRUE?

• A) Bundling in the cable industry is required by the government.
• B) There is little benefit in bundling varied TV channels, though there are added costs in doing so.
• C) Bundling has come under attack in the cable TV industry, but not in other industries.
• D) Bundling is rarely practiced by firms in the cable TV industry.

---

Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used by governments, businesses, and individuals to allocate resources.

Utility-maximizing Combination

The selection of goods and/or services that provides the highest utility (satisfaction) for a consumer subject to their income and the prices of the goods/services.

Total Utility

The total satisfaction received from consuming a specific quantity of a good or service.

Marginal Utility

The extra benefit or satisfaction gained by the consumption of one more unit of a product or service.