Multiple Choice
(Figure: Oligopoly Pricing Strategy in Wireless TV Market I) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market I. If the two firms in the cable TV market collude:
A) both firms advertise, and each earns $100,000.
B) neither firm advertises, and each earns $150,000.
C) Spectrum advertises and earns $130,000, while Sling does not advertise and earns $70,000.
D) both firms advertise, and each earns $130,000.
Correct Answer:

Verified
Correct Answer:
Verified
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