Table 16-3 The Information in the Table Below Shows the Total Demand

question 115

Multiple Choice

Table 16-3
The information in the table below shows the total demand for premium-channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero.

-Refer to Table 16-3.Assume that there are two digital cable TV companies operating in this market.If they are able to collude on the price and quantity of subscriptions to sell,what price (P) will they charge,and how many subscriptions (Q) will they sell collectively?

• A)P = $40, Q = 12,000
• B)P = $60, Q = 9,000
• C)P = $80, Q = 6,000
• D)P = $100, Q = 3,000

---

Definitions:

Ties

Connections or relationships between individuals or entities, which can be social, professional, or emotional in nature.

Clique Network

A subgroup within a larger network where members have closer, more frequent, and exclusive interactions, often impacting the flow of information and influence.

Boundary-spanning Network

A network that reaches across and connects diverse organizations or social groups to facilitate information flow and collaboration.

Cohesion

The degree to which members of a group are attracted to and motivated to remain part of that group.