Explain the following situations. a. In Europe, many cell phone service providers give away for free what

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Explain the following situations.

a. In Europe, many cell phone service providers give away for free what would otherwise be very expensive cell phones when a service contract is purchased.

Why might a company want to do that?

b. In the United Kingdom, the country’s antitrust authority prohibited the cell phone service provider Vodafone from offering a plan that gave customers free calls to other Vodafone customers. Why might Vodafone have wanted to offer these calls for free? Why might a government want to step in and ban this practice? Why might it not be a good idea for a government to interfere in this way?

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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