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Fones Inc. and Speed Dial Corp. are two competitors in the mobile phone market. The cost incurred by each company to manufacture smartphones is $200 per unit. Although both the companies sell their smartphones at the same price, Speed Dial Corp. has a larger market share in the smartphone industry. What does this imply

Respuesta :

Parrain

Answer: C. Speed Dial Corp has been able to offer more perceived value than Fones Inc.

Explanation:

Both companies incur the same costs to produce the phone and also sell at the same price. This means that they should be selling the same number of phones in theory. This is not the case however as Speed Dial Corp is selling more.

The reason Speed Dial must be selling more phones is that they sell a better phone for the same price. In offering more value to the customer for the same price, the customers are buying more from Speed Dial than from Fones because they are getting a better deal for the same price which means that Speed Dial's phone is undervalued.