Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute and the largest fixed fee that it can, what is Always There's profit per customer?
A. $153.13
B. $150.00
C. $187.50
D. $37.50
B. $150.00
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When you have diminishing marginal returns to labor
A) variable costs remain constant as more output is produced. B) variable costs fall as more output is produced. C) variable costs rise as more output is produced. D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.
Which of the following statements best defines private costs?
A) They are internal in the sense that the firm or household must explicitly take them into account. B) They are costs borne by people other than those who commit the action. C) They are synonymous with social costs. D) They represent explicit costs incurred by business firms in the private sector.
Because perfectly competitive markets rarely exist in the real world, the model has limited usefulness
a. True. b. False.
If the structural unemployment rate is 3 percent, the frictional unemployment rate is 2 percent, and the current unemployment rate is 6 percent, then the economy is in a recessionary gap
Indicate whether the statement is true or false