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Twenty years ago, cable television companies typically exhibited the following characteristics: They were granted the exclusive right to provide cable service to customers in a particular city; e

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Twenty years ago, cable television companies typically exhibited the following characteristics: They were granted the exclusive right to provide cable service to customers in a particular city; e.g. it was impossible for Comcast and Suddenlink to both offer cable service to Shreveport customers. The companies determined the prices they would charge those customers. For this legal permission, the companies had to pay a franchise fee to the city in which they operated, usually a particular percentage (set by the city) of gross revenue. The companies hired different types of employees: accountants, HR managers, office staff, etc. whose skills were transferrable to other firms, occupations, and industries; and technicians, electricians, and programmers whose skills were not easily transferrable to other firms, occupations, or industries. The companies purchased land from available plots in the city, and purchased capital equipment some of which, again, was transferable to other firms (computers, desks), and some of which was not (equipment specifically designed for cable provision). How much market power would the individual cable company have in setting the customer price of cable service back then? Select one:

a. Significant power.

b. Moderate or mild power.

c. Little to no power.

2. How much market power would the individual cable company have in setting the city franchise fee back then? Select one:

a. Little to no power.

b. Significant power.

c. Moderate or mild power.

3. How much market power would the individual cable company have in setting the prices of transferable workers and capital back then? Select one: a. Moderate or mild power.

b. Significant power.

c. Little to no power.

4 .How much market power would the individual cable company have in setting the wages of non-transferable workers and capital back then? Select one:

a. Moderate or mild power.

b. Significant power.

c. Little to no power.