Scenario 17-6 Assume That a Local Telecommunications Company Sells High Speed Internet

question 380

Short Answer

Scenario 17-6
Assume that a local telecommunications company sells high speed internet access and cable television. The company's only two customers are Taylor and Tim. Taylor is willing to pay $50 per month for high speed internet access and $50 per month for cable television. Tim is willing to pay only $20 per month for high speed internet access, but is willing to pay $70 per month for cable television. Assume that the telecommunications company can provide each of these products at zero marginal cost.
-Refer to Scenario 17-6. If the telecommunications company is unable to use tying, what is the profit-maximizing price to charge for cable television?

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Definitions:

Tomography

Imaging by sections or sectioning, through the use of any kind of penetrating wave or mechanical vibrations.

Thermography

A diagnostic technique that uses infrared data and thermal imaging to detect changes in temperature and blood flow in body tissues.

Ultrasonography

A diagnostic medical procedure that uses high-frequency sound waves to produce images of structures within the body.

Angiocardiogram

An imaging test that uses X-rays to visualize the heart’s chambers and blood vessels.