Local phone companies have monopolies on phone service within their areas. Cable
television can be transmitted via the wires that are already in place and owned by the
phone companies. Cable television companies argue that if the telephone companies
were to offer cable service, these telephone companies would have an unfair
advantage, because their cable transmissions could be subsidized by the profits of
their monopolies on phone service.
On the basis of the information provided in the passage above, which of the
following questions can be answered?
(A) Are phone companies as efficient as cable companies in providing reliable
and inexpensive service?
(B) If phone companies were allowed to provide cable service, would they want
to do so?
© Do the cable companies believe that the local phone companies make a profit
on phone service?
(D) Are local phone companies forbidden to offer cable service?
(E) Is it expected that phone companies will have a monopoly on cable service
Answer with explanation.