The Following Table Shows a Small Community's Demand for Monthly

question 125

Multiple Choice

The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster) sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero) due to excess capacity.Use this information to answer the following questions:

-An agreement between Nextflix and Flixbuster to each supply 250 subscriptions is an example of

• A) price discrimination.
• B) Bertrand competition.
• C) price leadership.
• D) collusion.
• E) increasing marginal costs.

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Definitions:

Uncontrolled Growth

Often refers to abnormal cell growth, such as in cancer, where cells divide and multiply in an unregulated manner.

Cancer Cells

Abnormal cells that divide uncontrollably, have the ability to infiltrate and destroy normal body tissue, and can spread to other parts of the body.

Mutations

Changes in the DNA sequence of an organism's genome, which can lead to variations in physical traits or an increase in susceptibility to certain diseases.

Socioeconomic Status

An individual's or family's economic and social position in relation to others, based on income, education, and occupation.