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In order to increase revenues, a cell-phone company has decided to change its fee structure. Instead of charging a flat rate of
In order to increase revenues, a cell-phone company has decided to change its fee structure. Instead of charging a flat rate of
admin
2011-01-20
77
问题
In order to increase revenues, a cell-phone company has decided to change its fee structure. Instead of charging a flat rate of $20 per month and $0.05 for every minute over 200 minutes, the company will now charge $50 per month for unlimited usage. Which of the following is a consideration that, if true, suggests that the new plan will not actually increase the company’s revenues?
选项
A、A rival company, which charges no start-up fee, offers an unlimited calling plan for $40 per month.
B、Two-thirds of the company’s customers use less than 500 minutes per month.
C、Studies have shown that customers using unlimited calling plans will increase their monthly usage of minutes by over 50 percent.
D、One-fifth of the company’s customers use in excess of 1,000 minutes per month.
E、In recent months the company has received several complaints of insufficient signal strength and poor customer service.
答案
A
解析
If a rival company offers an apparently comparable plan for 20 percent less, it is likely that customers will switch to that rival company’s plan, thereby reducing the company’s revenue.
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