Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. If the firm will charge a monthly access fee plus a per hour rate, the monthly access fee will equal
A) $1.
B) $5.
C) $8.
D) $16.
D
You might also like to view...
When the economy is at full employment, the
A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent. E) frictional unemployment rate is equal to 0 percent.
An increase in price will result in an increase in total revenue if demand is:
A) perfectly elastic. B) relatively elastic. C) inelastic. D) unit elastic.
A rise in U.S. real GDP would cause
a. leftward shifts of the demand curves for foreign currencies b. rightward shifts of the demand curves for foreign currencies c. rightward movements along the demand curves for foreign currencies d. no change in the demand curves for foreign currencies e. initial rightward movements along the demand curves for foreign currencies, followed by leftward shifts of those curves.
The slope of the saving function is equal to # randomize
A. The MPS B. The MPC C. 1- MPS D. 1+ MPS