You Cannot Purchase a Cable Subscription for Single Channels Like

question 134

Multiple Choice

You cannot purchase a cable subscription for single channels like the Food Network or Cartoon Network because cable companies:

• A) act like perfectly competitive firms.
• B) are not interested in maximizing their profits.
• C) have no market power to sell individual channels.
• D) act like monopolies.
• E) are pressured by the government to provide channel packages.

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Definitions:

Compounded Semiannually

Interest calculation method where interest is added to the principal sum of a deposit or loan twice a year, resulting in interest earning interest.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, leading to an increase in the amount of interest earned in subsequent years.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Annuity

A fiscal tool that disburses a set sequence of payments to a person, frequently serving as a financial income for retirees.