The Reason That the Local Telephone Company Is Able to Engage

question 62

Multiple Choice

The reason that the local telephone company is able to engage in price discrimination between business and residential customers in providing local phone service is that

• A) it is the only provider of local (landline) telephone service.
• B) it must be extremely difficult, if not impossible, for one consumer to resell phone service to another.
• C) business and residential customers differ in their willingness to pay for phone service.
• D) All of the above are correct.