When a cable TV provider offers,say,ESPN and the Weather Channel together but not separately,the reason is that
A) there is no demand for either one without the other.
B) the provider is betting that customers will buy both rather than neither.
C) government regulations limit the range of services a monopolist can offer.
D) offering the two separately would be a market inefficiency.
E) it is technologically much easier to keep them together.

Question

Quizplus · Accepted Answer

By offering ESPN and the Weather Channel together, the provider is attempting to increase the perceived value of the bundle and encourage customers to purchase both channels instead of neither. This allows the provider to maximize revenue and profits. It is a common pricing strategy in the cable TV industry.

When a Cable TV Provider Offers,say,ESPN and the Weather Channel