Which of the Following Is Not True About the Aftermath

question 78

Multiple Choice

Which of the following is not true about the aftermath of the Telecommunications Act of 1996?

• A) Competition from allowing regional and long-distance phone companies as well as cable companies into each other's markets has kept cable rates low.
• B) Consolidation of regional phone, long-distance, cable, and Internet service companies has decreased competition and left consumers with high cable bills.
• C) The cable industry has spent almost $150 billion installing and upgrading its technological infrastructure in the United States.
• D) Cable companies now bundle digital cable television, Internet, and phone services.
• E) All of the options are correct.

---

Definitions:

Potential Competitors

Firms or individuals that are not currently in the market but have the ability to enter and compete in the future.

Oligopolistic Industry

A market structure characterized by a small number of firms dominating the market, leading to strategic interactions in pricing and output.

Economic Efficiency

A situation where the distribution of resources is designed to enhance the production of goods and services maximally.

Demand Conditions

Factors that affect consumer desire for a product or service, including income levels, tastes, and price of substitutes.