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. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, which of the following is the most profitable price per minute?
A. $0.35
B. $0.40
C. $0.50
D. $0.60
C. $0.50
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In producing the efficient amount of a public good, government should take into account:
A. only the demand from high-demand consumers. B. only the demand from low-demand consumers. C. the horizontal sum of all individual inverse demand curves. D. the vertical sum of all individual inverse demand curves.
Because inflation undermines money's unit of account function, government policy will try to keep it:
A. at zero. B. at either a low or a negative rate. C. at a low rate. D. negative.
Dynamic tax analysis assumes
A. all of the present tax rates will be in place for a minimum of twenty years. B. changes in the tax rates have no effect on tax revenue. C. changes in the tax rates have no effect on the tax base. D. changes in the tax rates will change the tax base.
Some politicians argue that reducing the corporate income tax will increase business investment spending.
Answer the following statement true (T) or false (F)