1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elenna [48]
2 years ago
15

Harvey Rabbitt pays for monthly cable TV service. Last​ week, the cable company informed Harvey that his monthly cable price wou

ld go down because the city council has granted approval for three new cable companies to service his area. How is the market for cable TV services affected by​ this?
Business
1 answer:
hichkok12 [17]2 years ago
8 0

Answer:

The company pass from monopoly to a competitive market.

The new companies increase the supply and therefore, the equilibrium price decreases.

Explanation:

The approval of new cable companies generates an increase in the supply. As the suply shift to the right the quantity (people wiht a monthly cable service) will increase and the price (monthly fee) decrease.

Harvey's Company is already starting to decrease his price to do an effort to retain his customer. This company is no longer a monopoly so it will decrease price to be more competitive.

You might be interested in
Suppose Susan owns a business that operates in a market characterized by monopolistic competition. Susan's profit-maximizing pri
densk [106]

Answer:

C) marginal revenue will be greater than marginal cost. 

Explanation:

A monopolistic competition is when there are many buyers of differentiated goods. The demand curve of a monopolistic competition is downward sloping. This downward sloping demand curve indicates that there's a negative relationship between price and quantity demanded.

If Susan increases her price to $15, all things being equal, Quanitity demanded would fall and her profit would fall.

At the profit maximising price of $12, marginal revenue is equal to marginal cost. So if price is increased to $15, marginal revenue would exceed marginal cost.

I hope my answer helps you

4 0
3 years ago
Read 2 more answers
If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then
jasenka [17]

Answer:

Price Elastic

Explanation:

We know that

The formula to compute the price elasticity of demand is shown below:

= (Percentage change in quantity demanded) ÷ (percentage change in price)

The classification as follows

1. Perfectly inelastic = If zero  

2. Inelastic = When elasticity is below than one

3. Unitary elastic = When elasticity is equal to one

4. Elastic = When elasticity is exceeded than one

5. Perfectly elastic = When elasticity is in infinity

Since the  percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one

8 0
2 years ago
Read 2 more answers
The information content of a regular dividend increase generally signals that:Multiple Choicefuture dividends will be lower.the
Natali5045456 [20]

Answer:

management believes the future earnings of the firm will be strong

Explanation:

The information content with respect to the regular dividend would be increase when the company would have a greater amount of earnings in near future and they try to give the greater amount of dividend to the shareholders. This represent the management would trust that the earnings of the future of the firm would be strong

Hence, the last option is correct

5 0
2 years ago
Finance prepares students for jobs in banking, investments, insurance, corporations, and government. It is important for all bus
BabaBlast [244]

Answer:

This statement about finance is true.

Explanation:

Finance can be defined as the study of money management and activities related to it. It is concerned with allocation of assets and liabilities. It can categorized into three types, public, personal and corporate.

Studying finance is important for business students, irrespective of their majors as finance is crucial part of any business and plays a very vital role in the working of any organization. Finance lies at the core of the business decision making. It is thus necessary to understand the concept of finance.

Also, to all individuals, knowledge of finance is helpful as it is involved in our daily lives, in paying our bills and managing our taxes or in loans and mortgages.

4 0
3 years ago
What rapidly changing factor has led to the social age in business?
Nina [5.8K]

Answer:

Communication technology

Explanation:

6 0
3 years ago
Other questions:
  • Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 201
    11·1 answer
  • Needing some help deciding on this one:
    9·1 answer
  • An end items demand forecasts for the next 10 weeks are 30, 20, 35, 50, 25, 25, 0, 40, 0, and 50 units. The cur-rent on-hand inv
    8·1 answer
  • The inventory records for Radford Co. reflected the following Beginning inventory @ May 1 800 units @ $ 3.20 First purchase @ Ma
    11·1 answer
  • The Fama-French 3 factor model contains... Group of answer choices market, momentum, and liquidity risk factors none of the answ
    13·1 answer
  • Who is the world 2nd world richesten?​
    10·1 answer
  • 100 PIONTS PLZ Answer
    11·1 answer
  • Pam always drives under the speed limit to her risk and keep insurance costs down. Even so, she got into an accident and filed a
    5·1 answer
  • Why is it important to reconcile your bank statements?
    13·1 answer
  • Charley Davison Inc. produced 10,000 motorcycles last year and sold 9,000 of them each for $18,000/bike. Variable cost was $13,0
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!