Figure 15 7 shows the cable television market in Upstate New York 139 Refer to

Figure 15 7 shows the cable television market in

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monopoly that Time Warner Cable had in most local communities in the region. Figure 15-7 shows the cable televisionmarket in Upstate New York. 139)Refer to Figure 15-7.Following the entry of Verizon, the subscription price falls fromPMtoPC.What is the increase in consumer surplus as a result of this change? A) the areaB+C+DB) the areaD+FC) the areaB+CD) the areaA+B+CAnswer: A139)Diff: 3Page Ref: 510-511/510-511Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills 140)Refer to Figure 15-7.What is the size of the deadweight loss prior to Verizon entering the marketand what happens to this deadweight loss after Verizon does enter the market? 140)Diff: 3Page Ref: 510-511/510-511Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills 42

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