Question
Sprint is one of the largest mobile service providers in the USA. In March 2011, Sprint had 13.1 million prepaid customers, and 33 million post-paid
Sprint is one of the largest mobile service providers in the USA. In March 2011, Sprint had 13.1 million prepaid customers, and 33 million post-paid customers. Sprint's prepaid brands include Virgin Mobile USA, Boost Mobile, and Assurance Wireless. Sprint's ARPU from prepaid customers was $28 per month, as compared with $56 per month from post-paid customers.
(a) Explain the meaning of normal and inferior products.
(b) Apply the concepts of normal and inferior products to prepaid and post-paid mobile telephone service.
(c) Refer to Sprint's ARPU from prepaid and post-paid customers. Are the data consistent with your answer to (b)?
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