Suppose There Are Two Types of Cable TV Viewers

question 172

Multiple Choice

Suppose there are two types of cable TV viewers. The first type places a high value on sports channels (e.g., ESPN, Fox Sports, and The Golf Channel) and a low value on all other channels. The second type places a high value on music channels (VH1, MTV3, and CMT) and a low value on all other channels. In this case, we would expect cable operators to:

• A) sell sports and music channels in one bundle to both types of viewers.
• B) sell only sports channels to the first type of viewers and sell only music channels to the second type of viewers.
• C) use "à la carte" pricing.
• D) use fixed-cost pricing.

---

Definitions:

Trading Partners

Companies or entities that engage in commerce with each other, involving the exchange of goods, services, or information.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, committed to regional integration.

Asia-Pacific Region

The Asia-Pacific Region is a geographical area near the western Pacific Ocean, including countries in East Asia, Southeast Asia, and Oceania, known for its diverse cultures, economies, and strategic importance.

US Relations

The diplomatic, economic, social, and military interactions between the United States and other countries or international organizations.