The Cable and Subscription TV Business Is Plagued with the Problem

question 106

Multiple Choice

The cable and subscription TV business is plagued with the problem of "signal theft." People use illegal receivers to capture the company's signal without paying.Enforcement of the company's property right is very expensive.This problem emerges because TV signals are basically

• A)economic goods.
• B)invisible goods.
• C)depletable goods.
• D)public goods.

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Definitions:

Price Discrimination

A pricing strategy where similar goods or services are sold at different prices to different groups of people.

Ethnic Group

A community or population made up of people who share a common cultural background, ancestry, or social experience.

Potential Competitors

Firms that are not currently in a market but have the capacity to enter if they choose.

Price-Elastic

Price-elastic refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price; high elasticity means quantity changes significantly with price changes.