In the case of cable television, contestability is often hampered by:
A) high variable costs.
B) low variable costs.
C) high fixed costs.
D) low fixed costs.

Question

Quizplus · Accepted Answer

The correct answer is C as cable television has high fixed costs, such as laying cables and maintaining them. These costs cannot be quickly adjusted, making entry difficult and reducing contestability.

In the Case of Cable Television, Contestability Is Often Hampered