(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use

Multiple Choice

(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. If the two firms in the cable TV market collude:
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A) Spectrum will set a high price and earn $80,000, and Sling will set a low price and earn $130,000.
B) Spectrum will set a low price and earn $130,000, and Sling will set a high price and earn $80,000.
C) both firms will set a low price, and each will earn $90,000.
D) both firms will set a high price, and each will earn $100,000.