An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's
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An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 200p (with p measured in cents) and Firm 2's is Q2 =5,000 100p. The marginal cost of providing a phone call is 6 cents. Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-1259290619
9th edition
Authors: Michael Baye, Jeff Prince
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