Related to the Economics in Practice on Page 279: Which

question 139

Multiple Choice

Related to the Economics in Practice on page 279: Which of the following best explains why cable television consists of local monopolies?

• A) A firm that is awarded a local cable monopoly must follow a set of rules governing price and availability.
• B) Profit margins in the cable television industry are consistently higher than those of other industries.
• C) Fixed costs are high, but the marginal cost of serving additional customers is low.
• D) As the cable television industry has matured, access to cable television is increasingly perceived as a household necessity.

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Definitions:

Boring

A process for creating a hole by removing material or a term used to describe something that is tedious and uninteresting.

Symbolize

The process of representing objects, functions, or processes with symbols.

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A wish for fortune or success.