Suppose Technical Change Makes It Cheaper for Cable Television Suppliers

question 159

Multiple Choice

Suppose technical change makes it cheaper for cable television suppliers to supply their service. The capture theory would predict that the regulators would

• A) allow the firms to capture the savings and would lower price only if the firms asked them to.
• B) force the firms to pass the savings on to consumers in the form of lower prices.
• C) force the firms to pass the savings on to consumers in the form of better service.
• D) force the firms to pass some of the savings on to consumers and permit them to keep some of the savings for themselves.

---

Definitions:

Forest Fire

A large, uncontrolled fire occurring in an area of combustible vegetation, often in rural spaces.

Miraculously Spared

Unharmed or saved from a dangerous or potentially fatal situation in a way that seems extraordinary or beyond the ordinary course of events.

Survivor Guilt

An emotional condition experienced by those who have survived a traumatic event, feeling guilt for having survived when others did not.

Challenging Situation

Circumstances that require novel solutions or responses, often perceived as difficult to overcome.