One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy. The focus is now on providing customers with “affordable and accessible services." To do this they need your economic expertise. They know that when price for premium services increases from R2/minute to R2.2/minute the demand for their services falls from 12 customers to 10 customers. Question: What recommendations can you make to increase total revenue?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy.
The focus is now on providing customers with “affordable and accessible services." To do this
they need your economic expertise.
They know that when price for premium services increases from R2/minute to R2.2/minute the
demand for their services falls from 12 customers to 10 customers.

Question: What recommendations can you make to increase total revenue?

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