61.3k views
1 vote
True or false: over time, the telephone company has a very strong incentive to lower costs when subject to average-cost pricing regulations.

User Nerian
by
8.3k points

2 Answers

3 votes

Answer:

The correct answer is: True.

Step-by-step explanation:

Technology rapidly advancing has led to mobile phones to be more sophisticated. Besides, as this technology is so common, mobile phones are more accessible in terms of prices. This is a big plus for telecommunication companies since lines are needed so that the cell phones can work. Not only adults use cell phones but it has a big market in teenagers. Being said this, there is no reason why telephone companies should not lower costs when the government implements regulations about average-cost pricing.

User Eddie Kumar
by
9.0k points
3 votes
The correct answer for the given statement above would be TRUE. It is true that over time, the telephone company has a very strong incentive to lower costs when subject to average-cost pricing regulations. Hope this is the answer that you are looking for.
User Jpmarindiaz
by
7.6k points

Related questions

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.