00:02
In 2014, tom warner cable and comcast intended to merge, but that brought up questions about monopoly, because, of course, a monopoly means that the company is the only supplier of cable access for many people.
00:21
And then it could also result in monopsony because the merge company would be the only purchaser of the programming for the broadcast shows.
00:32
So assume the merger occurred and for each of the following cases, figure out if we have a monopoly, monopsony, or neither.
00:42
So the first is the cable fee for the consumers increases more than the increase in the cost of producing and delivering the programs over the cable.
00:54
This would be an effect of having a monopoly.
00:58
So we'd say that the customers pay more, or the, i'd let me say, viewers pay more.
01:18
So in that case, for part a, that would be an effect of a monopoly.
01:23
Companies in part b that advertise on cable tv have to pay higher rates for advertising.
01:30
So that would be the effect of a monopoly as well, because companies that advertised would be be consumers of the monopoly product, just like the people watching tv...