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What level should it set these charges

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Reference no: EM13906430

An upstart phone company has only two potential large customers, Firm A and Firm B.

Firm A's monthly demand for phone calls is Q1 = 2,800 - 200p (with p measured in cents) and Firm 2's is Q2 =5,000 - 100p. The marginal cost of providing a phone call is 6 cents.

Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?

Reference no: EM13906430

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