We cannot purchase a cable subscription for single channels like the Food Network or Cartoon Network because cable companies
A) act like perfectly competitive firms.
B) are not interested in maximizing their profits.
C) have no market power to sell individual channels.
D) act like monopolies.
E) are pressured by the government to provide channel packages.

Question

Quizplus · Accepted Answer

Cable companies act like monopolies because they have exclusive control over the cable market in a particular area. They offer packages of channels bundled together, which allows them to maximize their profits by charging higher prices for access to popular channels like the Food Network or Cartoon Network. They make it difficult for consumers to purchase individual channels because they want consumers to buy the entire package at a higher price, which reflects their market power.

We Cannot Purchase a Cable Subscription for Single Channels Like