1.) Suppose Always There Wireless serves 100 high-high demand wireless consumers

Question

1.) Suppose Always There Wireless serves 100 high-high demand wireless consumers,
each of whose monthly demand curve for minutes of wireless service is and
300 low-demand consumers, each of whose monthly demand curve for minutes of wireless is, where P is the per-minute price in dollars. Its marginal cost is $0.25 per
minute. Suppose Always There Wireless charges $0.25 per minute.

a. How many minutes will high-demand consumers purchase?

b. How many minutes will low-demand consumers purchase?

c. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?

d. What are the profits from sales to each of the low-demand consumers?

Explanation / Answer

A. 100*x per minute=100X B. 300*P=300P C. They can charge 300P=.25 P=1200 D. Profits are 300P 300*(1200)=3600 Hope tis help

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