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uppose that a small town is served by one Internet provider, InterSet, whose firm is set up in a way that it is prohibitively costly
uppose that a small town is served by one Internet provider, InterSet, whose firm is set up in a way that it is prohibitively costly to change its offerings to customers. A new Internet provider, SpeedPlus, decides to enter the market. SpeedPlus conducted some market research, and discovered that the consumers in that small town would be very averse to paying any more for their internet than they currently do. SpeedPlus also knows that consumers prefer faster internet, (although speedier service is slightly more expensive to provide).assuming speed is the only difference between the two services, how is the surplus split between InterSet and SpeedPlus? InterSet (old firm) captures all surplus. SpeedPlus (new entrant) captures all surplus. InterSet (old firm) and SpeedPlus (new entrant) split the surplus. Both firms receive zero profits. select any one option ,A.0 select any one option InterSet (old firm) captures all surplus. B.0 SpeedPlus (new entrant) captures all surplus. C.0 InterSet (old firm) and SpeedPlus (new entrant) split the surplus. D Both firms receive zero profits
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