Acable company can add a subscriber for and a market failure occurs because the price charged
a. nearly zero marginal cost; is extortionist
b. less than average cost; reduces consumer surplus
c. average variable cost; increases producer surplus
d. nearly zero marginal cost; exceeds marginal cost

The correct answer is "D. nearly zero marginal cost; exceeds marginal cost".

Explanation: A cable company can add a subscriber for nearly zero marginal cost and a market failure occurs because the price charged exceeds marginal cost.

This happens because the cost of adding one more subscriber is almost nil.

"A"

Explanation:

One of the major advantages of service companies like a cable company is that apart from the initial set up cost , subsequent cost of production of services are always at minimal as they basically enlist a new customer on an existing platform of service provision.

We also need to know that market failure could arise as a result of abuse of power or position in a market economy. When the price charged by a service provider becomes too exorbitant , there is a threat of potential market failure.

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!