Use the Following to Answer Questions

question 242

Multiple Choice

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

• A) CableNorth will set a high price and earn $80,000 per month, and CableSouth will set a low price and earn $130,000 per month.
• B) CableNorth will set a low price and earn $130,000 per month, and CableSouth will set a high price and earn $80,000 per month.
• C) both firms will set a low price and each will earn $90,000 per month.
• D) both firms will set a high price and each will earn $100,000 per month.