QUESTION 9 A telecom incumbent owns the upstream network and is currently a monopoly retail supplier. The incumbet has fixed cost of F=1.4 and
QUESTION 9 A telecom incumbent owns the upstream network and is currently a monopoly retail supplier. The incumbet has fixed cost of F=1.4 and marginal cost of co=0.3 per call for its upstream network. The incumbent's retail marginal cost of a call c=.25 and its retail price is fixed p|=0.75. Give the Efficient Component Pricing Rule (ECPR) rate of access to the incumbent's network. If applicable, give up to two decimal places rounding up the second decimal place, eg use 87.65 instead of 87.647.
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