Use the following information to work Problems 10 and 11. FCC planning rules to open cable market The Federal Communications Commission (FCC) will make it easier for independent programmers and rival video services to lease access to cable channels. The FCC will also limit the market share of a cable company to 30 percent 10. What barriers to entry exist in the cable television market? Are high cable prices evidence of monopoly power? 11. Draw a graph to illustrate the effects of the FCC’s new regulations on the price, quantity, consumer surplus, producer surplus, and deadweight loss.
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