Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's profit from sales for each high-demand consumer?
A. $27.63
B. $37.63
C. $21.13
D. $28.13
B. $37.63
Economics
You might also like to view...
In the Keynesian model, which curve is vertical?
A) LRAS B) SRAS C) AD D) NS
Economics
Explain the capture hypothesis
What will be an ideal response?
Economics
Other things remaining the same, a decrease in inflationary expectations causes the velocity of money to:
a. Rise. b. Fall. c. Not change.
Economics
As the usage of an input increases, marginal product:
A. initially decreases then begins to increase. B. consistently decreases. C. initially increases then begins to decline. D. consistently increases.
Economics