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D Q2 (44 points total) The call industry has become increasingly competitive in recent years, with the entry of many overseas call centers. However, after
D Q2 (44 points total) The call industry has become increasingly competitive in recent years, with the entry of many overseas call centers. However, after years of outsourcing, call centers have returned to the US. "After years of sending call center jobs to India, the Philippines, Mexico and other countries, companies are bringing them back to the U.S. An estimated 5 million Americans are employed in call centers. The trend, industry watchers said, is driven by changes in technology, rising overseas labor costs.." (USA Today) You have been asked to evaluate the call center industry, based on information on the two largest call center supply markets, the mid-west US and the Philippines. The average cost curves for individual call centers in each location are as follows (in tens of thousands of dollars): ATCus = 14 -6q + q2 ATCPhilippines = 18 - 8q + q2 Overall demand for call centers (i.e., across both markets) is given by: Q = 800 - 100P Where Q = the number of call centers demanded and P equals the price of a call center, in tens of thousands of dollars
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