Multiple Choice
Use the following to answer questions:
Figure: Pricing Strategy in Cable TV Market I 
-(Figure: Pricing Strategy in Cable TV Market I) Look at the 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 tendency for either CableNorth or CableSouth to stop advertising.
D) there is a tendency for both CableNorth and CableSouth to stop advertising.
Correct Answer:
Verified
Correct Answer:
Verified
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