EXHIBIT 1.6 RELATIONSHIP OF USER BENEFITS TO TRUE ECONOMIC BENEFITS
Old price, cost
15%
drop
New price, cost
Old price
15% drop ↓
New price
Old cost
15% drop
Д
New cost
Old cost
15% drop ↓
New cost
Old price
15% drop
↓
New price
(1) CASE 1: NON-SUBSIDIZED SERVICES
Demand curve
Number of customers
(2) CASE 2: CROSS-SUBSIDIZING SERVICES
Demand curve
Number of customers
(3) CASE 3 : CROSS-SUBSIDIZED SERVICES
Note: Area shaded
must be subtracted from area
shaded N to measure
true economic benefit in case 3.
Demand curve
Number of customers
Potential user benefit as measured in Exhibit 1.5
True economic benefit
←
17.
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