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 $0.25 per minute and the largest fixed fee that it can, what is Always There's profit per customer?
A. $153.13
B. $196.88
C. $200
D. $175
A. $153.13
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Economic growth is usually defined as
A) the increase in output over time, as measured by real per capita Gross Domestic Product (GDP). B) the reduction in the real cost of necessities. C) the rate of increase in output divided by the increase in labor. D) the increase in input availability.
To ensure that the fundamental identity of national income accounting holds, changes in inventories are
A) treated as part of expenditure. B) treated as part of saving. C) ignored. D) counted as consumption.
Government's ability to force people to do things involuntarily is:
A. Unconstitutional in the U.S. and other market economies B. Always going to lead to lower economic efficiency C. Beneficial if it is used to improve economic efficiency D. Always beneficial in reducing the deadweight loss in the economy
A single-price monopoly will set its price according to which of the following rules?
A) P = MR and MR = MC B) P = MC where the MC curve crosses the demand curve C) P = MR where the MR curve crosses the demand curve D) None of the above answers is correct.