Figure 15-11 In 2011, Verizon Was Granted Permission to Enter the Market

question 272

Multiple Choice

Figure 15-11

In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York.
-Refer to Figure 15-11.Suppose the local government imposes a $2.50 per month tax on cable companies.What happens to the price charged by the cable company following the imposition of this tax?

• A)The price rises from PM to (PM + $2.50).
• B)The price rises from PM but it increases by an amount less than $2.50.
• C)The price rises from PM but it increases by an amount greater than $2.50 to reflect the monopoly's markup.
• D)The price remains at PM.

---

Definitions:

Flexibility

The quality of being able to bend easily without breaking; adaptability or willingness to change.

Medical Facility

An establishment that provides medical examinations, treatments, and other healthcare services.

Crisis

A critical, unstable time or situation in which a decisive change is impending, often marked by a temporary rise in tension and the need for immediate action.

Critical-Thinking Skills

The ability to actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an answer or conclusion.