(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.

Question

(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.

Quizplus · Accepted Answer

The Answer of (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.