One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy. The focus is now on providing customers with “affordable and accessible services." To do this they need your economic expertise. They know that when price for premium services increases from R2/minute to R2.2/minute the demand for their services falls from 12 customers to 10 customers. Question: What recommendations can you make to increase total revenue?

One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy. The focus is now on providing customers with “affordable and accessible services." To do this they need your economic expertise. They know that when price for premium services increases from R2/minute to R2.2/minute the demand for their services falls from 12 customers to 10 customers. Question: What recommendations can you make to increase total revenue?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 13E

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