VoIP Telephone, Inc., provides local and long distance telephone service in the Toledo, Ohio market. The company faces the following segmented demand and marginal revenue curves for its service: Over the range of 0 to 25(000) customers per month: P1 = 6 - 0.04Q MR1 = ?TR1/?Q = 6 - 0.08Q When output exceeds 25(000) customers per month: P2 = 8 - 0.12Q MR2 = ?TR2/?Q = 8 - 0.24Q The company's total cost is as follows: TC = 2.50 + 1.50Q + 0.02Q2 where P is price (in dollars), Q is output (in thousands), and TC is total cost (in thousands of dollars). How much could marginal cost rise before the optimal price increase? How much could marginal cost fall before the optimal price decrease?
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