A Cable Company Can Add a Subscriber for ________ and a Market

question 48

Multiple Choice

A cable company can add a subscriber for ________ and a market failure occurs because the price charged ________.

• A)nearly zero marginal cost; exceeds marginal cost
• B)less than average cost; reduces consumer surplus
• C)nearly zero marginal cost; is extortionist
• D)average variable cost; increases producer surplus

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Definitions:

Climate Change

Long-term alterations in temperature, precipitation, and weather patterns, largely attributed to human activities, especially the emission of greenhouse gases.

Terror Management

A theoretical concept that explores how humans deal with the fear of their own mortality, often by seeking self-esteem and adhering to cultural values.

Social Dominance

A theoretical concept in social psychology that explains how societies maintain hierarchies and group-based social hierarchies through mechanisms of dominance and oppression.

Stereotype Threat

The experience of anxiety or concern in a situation where a person has the potential to confirm a negative stereotype about their social group, which can impair performance.