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 $0.25 per minute. How many minutes will high-demand consumers purchase?
A. 75
B. 175
C. 200
D. 100
B. 175
You might also like to view...
Costs that are independent of the firm's level of output are called
a. fixed costs. b. marginal costs. c. opportunity costs. d. sunk costs.
The financial innovation of numerical credit scoring contributed to the ________
A) "democratization of credit" B) reduction of loan-to-value ratios C) "depersonalization of credit" D) reduction of information asymmetries
A risk averse individual
a. values a lottery at more than its expected value b. values a lottery at exactly its expected value c. values a lottery at less than its expected value d. tends to play lots of lotteries
Suppose that there are two types of cars, good and bad. The qualities of cars are not observable but are known to the sellers. Risk-neutral buyers and sellers have their own valuation of these two types of cars as follows:Types of CarsBuyer's ValuationSeller's ValuationGood (50% probability)5,0004,500Bad (50% probability)3,0002,500When buyers do not observe the quality, what happens in the market?
A. Both good and bad cars are traded. B. Neither good nor bad cars are traded. C. Only good cars are traded. D. Only bad cars are traded.