Quiz_155 - Figure15-7 In2011,,endingthevirtual .Figure15- 103 RefertoFigure15-7.Supp

Quiz_155 - Figure15-7 In2011,,endingthevirtual .Figure15-...

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Figure 15-7In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtualmonopoly that Time Warner Cable had in most local communities in the region. Figure 15-7 shows the cable televisionmarket in Upstate New York.103)Refer to Figure 15-7.Suppose the local government imposes a $2.50 per month tax on cablecompanies. What happens to the price charged by the cable company following the imposition ofthis tax?A) The price rises fromPMbut it increases by an amount less than $2.50.B) The price remains atPM.C) The price rises fromPMbut it increases by an amount greater than $2.50 to reflect themonopolyʹs markup.D) The price rises fromPMto(PM+$2.50).Answer: B103)Diff: 3Page Ref: 499/499Topic: Antitrust Law and EnforcementLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills104) The size of a deadweight loss in a market is reduced byDiff: 2Page Ref: 500-501/500-501Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking31
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