AT&T offers Internet, mobile, landline, and digital TV.

AT&T offers Internet, mobile, landline, and digital TV.

AT&T offers Internet, mobile, landline, and digital TV. Consider two different segments: Millennial and Traditional, with willingness to pay for different products and market share as follows:
Consider a price menu of tow packages on of Mobile & internet for 495 and the other for Phone & Tv for $115.
Calculate the customer surplus
Calculate the revenue earned from each offering and market segment (Assume if consumer surplus segment and offering, the segment will purchase)
Calculate revenue as the product of price, market share and overall market size.
2.
Consider a price menu of three packages: Mobile & internet $95, Phone & TV for $115, and Mobile, internet, & TV for $145
Calculate the consumer surplus(Consumer Surplus= Willing to pay- Price)
Calculate the revenue earned from each offering and market segment
What is the total revenue earned?
What is the total revenue earned?
Market                  Mobile                  Phone & TV        Market
Segment              &internet            Willingness            Share
                            Willingness         to Pay
                           To pay
Millennial            $95                         $25                         30%
Traditional           $30                         $115                       70%

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