Use the following to answer questions:
Figure: Pricing Strategy in Cable TV Market II
-(Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II. The dominant strategy for CableSouth:
A) is to charge a high price.
B) is to charge a low price.
C) is to charge what CableNorth does.
D) does not exist.

Question

Use the following to answer questions:
Figure: Pricing Strategy in Cable TV Market II 
-(Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II. The dominant strategy for CableSouth:
A) is to charge a high price. 
B) is to charge a low price. 
C) is to charge what CableNorth does. 
D) does not exist.

Quizplus · Accepted Answer

The dominant strategy for CableSouth is to charge a low price because, regardless of what CableNorth does, charging a low price results in a better payoff for CableSouth.

Use the Following to Answer Questions