What was the managerial economic rationale for pricing


Sprint, prior to spinning the businesses off to concentrate on cellular phone service, provided both local and long distance landline service. A study noted that they 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 its costs for long distance services. What was the managerial economic rationale for this pricing?

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Microeconomics: What was the managerial economic rationale for pricing
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