America Online To Unveil Flat Fee For Internet Access
flat-fee rate of $19.95 per month.
After the changed in price (decrease), the Supply curve
“S” will shift to “S1″. An increase in Supply curve will increase
says there may be some short-term negative impact on margins.” Negative impact on margins means that there will be decrease in
earnings. Another reason for this pricing move is part of a broader effort to add new features to the service and make it more compelling
Since America Online?s price is lower people will tend to use America Online more. This is a competitive market as America Online
lowers their price, other competitors will lower their price too. This will happen until they reach the Equilibrium.
By staying in this fast-moving industry, America Online has unveiled a set of features that include enhancements to listening to audio
America Online also expected to unveil another initiative whereby Internet-service providers could offer their subscribers easy access to
America Online in return for ad revenue.