Solis pays a percentage of revenues as license fee for patented technology that it uses in manufacturing mobile phones. If the patent owner raises the percentage license fee, how should Solis adjust the price of the phones?
A) Reduce the price.
B) Increase the price.
C) Reduce the price according to the new marginal revenue and marginal cost.
D) Increase the price according to the new marginal revenue and marginal cost.
Correct Answer:
Verified
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