Pricing strategies, In the 1st half of the 20th century,

Pricing strategies

Reference no: EM1370716

In the 1st half of the 20th century, AT&T had a near monopoly on local and long distance phone service. The company 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. Why do you think AT&T adopted this pricing strategy?

Briefly explain why a used recreational vehicle (RV) that is only six months old and has been driven only 10,000 miles typically depreciates and costs at least 20 percent less than a new RV with the same options. Use pricing strategy and managerial economics to support your answer.

Reference no: EM1370716

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Pricing strategies : In the 1st half of the 20th century, AT&T had a near monopoly on local and long distance phone service. The company charged a price for local telephone services.

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