You Cannot Purchase a Cable Subscription for Single Channels Like

question 134

Multiple Choice

You cannot purchase a cable subscription for single channels like the Food Network or Cartoon Network because cable companies:

• A) act like perfectly competitive firms.
• B) are not interested in maximizing their profits.
• C) have no market power to sell individual channels.
• D) act like monopolies.
• E) are pressured by the government to provide channel packages.

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Definitions:

Bond Investment

Purchasing debt securities issued by corporations or governments to finance their operations, typically yielding interest income.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to reflect its current market value.

Long-Term Investment

assets purchased by a company that are intended to be held for more than one year, such as stocks, bonds, or real estate.

Realized Gain

The profit earned from selling an asset for more than its purchase price, recognizable when the transaction is completed.