Using Account Analysis, What Type of Cost Is Satellite TV

question 10

Multiple Choice

Using account analysis, what type of cost is Satellite TV when the charge is $45.00 per month plus $5.99 for pay-per-view movies?

• A)Mixed
• B)Fixed
• C)Step
• D)Variable

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Definitions:

Anticompetitive Mergers

Mergers between companies that significantly reduce competition in the market, potentially leading to higher prices and reduced consumer welfare.

Clayton Act

The federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices including tying contracts, interlocking directorates, and certain forms of price discrimination.

Monopoly Structure

A market structure characterized by a single seller producing a unique product with no close substitutes, leading to significant control over the market and pricing.

Natural Monopolies

A situation in which a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, due to economies of scale.