Question: The Mobile Phone Company has served Mobile, Alabama, since the 1930s as a government-authorized natural monopoly. The following table describes a portion of the demand curve for long-distance service facing Mobile Phone Company.
a. Complete the table.
b. How does the company's marginal revenue change as the price changes? What is the relationship between marginal revenue and price?
c. At what price does demand become inelastic?
d. What will happen to the elasticity of demand when a new company, Mobile Phones of Mobile, starts a competing wireless phone company?