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 neither CableNorth nor CableSouth advertises, then without any collusion:

Question

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 neither CableNorth nor CableSouth advertises, then without any collusion:

Quizplus · Accepted Answer

Without any advertising from either company, there is no incentive for one company to start advertising as it would not lead to any significant increase in customers or profits. Therefore, there is no tendency for either CableNorth or CableSouth to begin advertising.