Amanda Inherited the Only Local Cable TV/Internet Company in Town

question 282

Multiple Choice

Amanda inherited the only local cable TV/Internet company in town after her father passed away. The company has a local monopoly on the delivery of high-speed Internet service. The company is completely unregulated by the government and is therefore free to operate as it wishes. Assume that Amanda understands the true power of her new monopoly. Which of the following statements is (are) correct? (i)
She will be able to set the price of high-speed Internet service at whatever level she wishes.
(ii)
The customers will be forced to purchase high-speed Internet service at whatever price she wants to set.
(iii)
She will be able to achieve any profit level that she desires.

• A)(i) only
• B)(ii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Ethnocentric Reasons

Justifications or reasoning that are based on the belief in the superiority of one's own ethnic group or culture over others.

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European Union

A political and economic union of 27 European countries that are committed to regional integration through common policies and shared laws.

Measurement System

A comprehensive set of instruments, standards, and rules for quantifying physical quantities or dimensions.