Question about pricing strategies

Assignment Help Microeconomics

Reference no: EM1375609

According to Cahner's In Stat Group, number of worldwide wireless phone users will soon reach one billion. In the United States alone, the number of users is expected to increase by 17 million per year for the next five years. Contributing to the extensive growth are lower prices, larger geographic coverage, prepaid services, and Internet enabled phones. While the actual cost of basic wireless phone is about $75, most carriers offer their customers a free phone with a one year service agreement. Is this pricing strategy rational? Describe.

Reference no: EM1375609

Questions Cloud

Compute net marginal revenue product : Will Truman and Associates, LLC is a successful Manhattan based law company. Worker productivity at company is examined in billable hours, which vary in partners and associates.

Nation economic public policy decisions : To what extent do you think normative economic analysis, as opposed to positive economic analysis, determines our country's economic public rule decisions made by the government?

Applicability of the americans with disabilities act : A HR Director for a medium size public company. Under Americans with Disabilities Act are the following workers entitled to a affordable accommodation and, if so, what would be affordable:

Solving agency problems : The Wall Street Journal article reported that large hotel chains, such as Marriott, are tending to decrease the number of hotels that they franchise to outside owners and raise number the chain owns and manages itself.

Question about pricing strategies : According to Cahner's In Stat Group, number of worldwide wireless phone users will soon reach one billion. In the United States alone, the number of users is expected to increase by 17 million per year for the next five years.

Explain the principles of electromagnetic radiation : Explain the structure and nature of the ionosphere with reference to daily, seasonal and long-term changes and explain the modes of propagation of radio waves of different frequencies

Adverse selection problem : John have many ice cream stores located across the nation. John does not like to work evenings and employee Marcy to work the store in the evening for $7.50 each hour.

Use of coase theory : Discuss how to use Coase theory to see mandated mercury emissions and what do you think Coase would say to a supporter of free market environmentalism.

Develop marketing plans that meet marketing objectives : Provide learners with the understanding and skills to develop marketing plans that meet marketing objectives, and meet the needs of the target market.

User Account

All Pages