Use the Following to Answer Questions

question 183

Multiple Choice

Use the following to answer questions :
Figure: Pricing Strategy in Cable TV Market II
-(Figure: Pricing Strategy in Cable TV Market II) Use Figure: Pricing Strategy in Cable TV Market II.Suppose that,after 1 month,the cable providers follow a tit-for-tat strategy.Eventually,they will achieve a tacit collusive equilibrium at which:

• A) both firms set a low price and each earns $90 000.
• B) both firms set a high price and each earns $100 000.
• C) CableNorth sets a high price and earns $80 000,and CableSouth sets a low price and earns $130 000.
• D) CableNorth sets a low price and earns $130 000,and CableSouth sets a high price and earns $80 000.

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A private (civil) wrong against a person or his property.

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Exclusive Jurisdiction

Refers to the authority of only one court or jurisdiction to hear and decide a particular case, to the exclusion of all others.

Original Jurisdiction

The power of a court to hear a case for the first time, as opposed to appellate jurisdiction, which reviews the decisions of lower courts.