Local and long distance phone service


In the first half of the twentieth century AT&T held an almost total monopoly on local and long distance phone service. The firm charged a price for local telephone services that was roughly one-half of its cost of providing the services. In contrast, it charged almost two times it cost for long distance services. Use our material to explain why you think AT&T adopted this pricing strategy?

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Microeconomics: Local and long distance phone service
Reference No:- TGS063534

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