Ask Question
25 October, 06:59

Tele-com, inc., the nation's largest cable tv company, tested the effect of a price reduction for the disney channel. it lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. this means the

+4
Answers (1)
  1. 25 October, 07:36
    0
    This means that there were customers that were wanting the Disney channel, but did not get it because it was too expensive. Once the price went down these customers bought the service. The cable company test showed that they should keep their prices for the Disney channel low to generate more revenue. Even if they only had one customer to begin with they would only be making $10.75, and when they lowed their prices they would be making at least $15.90.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tele-com, inc., the nation's largest cable tv company, tested the effect of a price reduction for the disney channel. it lowered prices ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers