Multiple Choice
Use the following to answer question:
Figure: Pricing Strategy in Cable TV Market I
-(Figure: Pricing Strategy in Cable TV Market I) Use Figure: Pricing Strategy in Cable TV Market I.If both CableNorth and CableSouth advertise,then without any collusion:
A) CableNorth will stop advertising to maximize profits.
B) CableSouth will stop advertising to maximize profits.
C) there will be no incentive for either CableNorth or CableSouth to stop advertising.
D) there is an incentive for both CableNorth and CableSouth to stop advertising.
Correct Answer:

Verified
Correct Answer:
Verified
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