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:

High Culture

Aspects of culture that are considered the hallmark of sophistication and intellectualism, such as fine arts, classical music, and literature.

Ethnic Fractionalization Index

A measure indicating the likelihood that two randomly selected individuals from a population belong to different ethnic groups, used to assess diversity and potential for conflict.

Open-border Policies

Refers to the approach or policies that allow for unrestricted or minimally restricted cross-border movement of people between countries.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, with policies to ensure free movement of people, goods, services, and capital among the member states.