An upstart phone company has only two potential large, Ask an Expert

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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?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91697018

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