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 $0.30 per minute. How many minutes will high-demand consumers purchase?
A. 60
B. 30
C. 70
D. 170
D. 170
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Appendix: An optimal incentives contract can induce the revelation of true costs in a partnership by
a. imposing penalties when costs are overstated b. offering bonus payments when costs are verified c. renewing the reliance relationship d. linking revealed cost to the partner's foregone expected profits e. enlisting third-party enforcement
Which of the following is a problem encountered in a transaction involving a principal/agent relationship?
a. Absence of monitoring and supervision b. Excessive dependence on forecasts and expectations c. High investment in industry specific assets d. Government interference and market volatility
The adult population in Norland is 50 million. Among these adults, 20 million are employed and 10 million are unemployed. Determine the following. I. Labor force of Norland II. Unemployment rate in Norland III. Labor-force participation rate in Norland
he Social Security Program began during the administration of
A. Franklin D. Roosevelt. B. Harry S. Truman. C. Dwight D. Eisenhower. D. John F. Kennedy.