Two-part pricing bundling cross subsidization

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According to the Cahner’s In-Stat Group, the number of worldwide wireless phone subscribers will soon reach the 1 billion mark. In the United States alone, the number of wireless subscribers is projected to grow by almost 17 million subscribers 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 a basic wireless phone is about $150, most wireless carriers offer their customers a “free” phone with a one-year wireless service agreement. This pricing strategy is consistent with which of the following: Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Second-degree price discrimination Two-part pricing Bundling Cross subsidization.

Reference no: EM131244338

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