Use the Following to Answer Questions

question 170

Multiple Choice

Use the following to answer questions:
Figure: Pricing Strategy in Cable TV Market I
-(Figure: Pricing Strategy in Cable TV Market I) Look at the figure Pricing Strategy in Cable TV Market I. If the two firms in the cable TV market collude:

• A) both firms advertise, and each earns $100,000 per month.
• B) neither firm advertises, and each earns $150,000 per month.
• C) CableNorth advertises and earns $130,000 per month, while CableSouth does not advertise and earns $70,000 per month.
• D) both firms advertise and each earns $130,000 per month.

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Definitions:

Behavioral Learning

The process of acquiring new behaviors through conditioning and interaction with the environment.

Reinforcement

In psychology and marketing, the process of encouraging a desired behavior or response through rewards or positive outcomes.

Purchase

The act of buying goods or services, which involves an exchange of money or its equivalent.

Stimulus Discrimination

The ability to distinguish between different stimuli, often used in the context of learning and behavior modification.