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Deck 11: Pricing Policies
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Question
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 
,where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how many minutes will each customer buy each month?
A) 175
B) 200
C) 2
D) 225
,where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how many minutes will each customer buy each month?A) 175
B) 200
C) 2
D) 225
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?
A) $200
B) $153.13
C) $306.25
D) $175
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?A) $200
B) $153.13
C) $306.25
D) $175
Question
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of who has a monthly demand curve for wireless minutes of 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?
A) $153.13
B) $196.88
C) $200
D) $175
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?A) $153.13
B) $196.88
C) $200
D) $175
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's total profit?
A) $30,626
B) $39,376
C) $40,000
D) $35,000
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's total profit?A) $30,626
B) $39,376
C) $40,000
D) $35,000
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how many minutes will each customer buy each month
A) 200
B) 150
C) 175
D) 250
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how many minutes will each customer buy each monthA) 200
B) 150
C) 175
D) 250
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?
A) $200
B) $150
C) $225
D) $112.5
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?A) $200
B) $150
C) $225
D) $112.5
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's profit per customer?
A) $153.13
B) $150
C) $187.50
D) $37.50
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's profit per customer?A) $153.13
B) $150
C) $187.50
D) $37.50
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's total profit?
A) $30,626
B) $30,000
C) $37,500
D) $7,500
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's total profit?A) $30,626
B) $30,000
C) $37,500
D) $7,500
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in profit per customer compared to when it charges the marginal cost?
A) $6.25
B) $25
C) $3.13
D) $34.37
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in profit per customer compared to when it charges the marginal cost?A) $6.25
B) $25
C) $3.13
D) $34.37
Question
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 
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in total profit compared to when it charges the marginal cost?
A) $1,250
B) $5,000
C) $626
D) $6,874
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in total profit compared to when it charges the marginal cost?A) $1,250
B) $5,000
C) $626
D) $6,874
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?
A) 2500
B) 500
C) 200
D) 600
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?A) 2500
B) 500
C) 200
D) 600
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?
A) $4
B) $7
C) $6
D) $12
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?A) $4
B) $7
C) $6
D) $12
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A) $400
B) $2400
C) $2500
D) $0
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?A) $400
B) $2400
C) $2500
D) $0
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to adults to maximize profits?
A) 2500
B) 500
C) 200
D) 600
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to adults to maximize profits?A) 2500
B) 500
C) 200
D) 600
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?
A) $4
B) $7
C) $6
D) $12
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?A) $4
B) $7
C) $6
D) $12
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from adults?
A) $400
B) $2400
C) $2500
D) $0
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from adults?A) $400
B) $2400
C) $2500
D) $0
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from both students and adults?
A) $2900
B) $2500
C) $2100
D) $4900
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from both students and adults?A) $2900
B) $2500
C) $2100
D) $4900
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. Suppose the movie theater cannot price discriminate. What is the monopolist's profit from both students and adults?
A) $2500
B) $4950
C) $2450
D) $50
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater cannot price discriminate. What is the monopolist's profit from both students and adults?A) $2500
B) $4950
C) $2450
D) $50
Question
A movie monopolist sells to students and adults. The demand function for students is 
and the demand function for adults is 
. The marginal cost is $2 per ticket. What is the difference in the monopolist's profit when it is able to price discriminate and when it cannot?
A) $2500
B) $400
C) $0
D) $50
and the demand function for adults is . The marginal cost is $2 per ticket. What is the difference in the monopolist's profit when it is able to price discriminate and when it cannot?A) $2500
B) $400
C) $0
D) $50
Question
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 perminute price in dollars. Its marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?
A) 75
B) 175
C) 200
D) 100
and 300 low-demand consumers, each of whose monthly demand curve for minutes of wireless is , where P is the perminute price in dollars. Its marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?A) 75
B) 175
C) 200
D) 100
Question
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. How many minutes will low-demand consumers purchase?
A) 75
B) 175
C) 200
D) 100
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. How many minutes will low-demand consumers purchase?A) 75
B) 175
C) 200
D) 100
Question
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. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
Question
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. What are the profits from sales to each of the low-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. What are the profits from sales to each of the low-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
Question
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. What are the profits from sales to each of the high-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. What are the profits from sales to each of the high-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
Question
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. What are Always There Wireless's total profits?
A) $3752
B) $11,253
C) $61,252
D) $400
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. What are Always There Wireless's total profits?A) $3752
B) $11,253
C) $61,252
D) $400
Question
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 $0.30 per minute. How many minutes will low-demand consumers purchase?
A) 60
B) 30
C) 70
D) 170
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 $0.30 per minute. How many minutes will low-demand consumers purchase?A) 60
B) 30
C) 70
D) 170
Question
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 $0.30 per minute. How many minutes will high-demand consumers purchase?
A) 60
B) 30
C) 70
D) 170
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 $0.30 per minute. How many minutes will high-demand consumers purchase?A) 60
B) 30
C) 70
D) 170
Question
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 $0.30 per minute. What is the highest fixed fee Always There Wireless could charge without losing the low-demand consumers?
A) $28.13
B) $56.26
C) $24.50
D) $49.00
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 $0.30 per minute. What is the highest fixed fee Always There Wireless could charge without losing the low-demand consumers?A) $28.13
B) $56.26
C) $24.50
D) $49.00
Question
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 $0.30 per minute. What is the profit from sales to each of the low-demand consumers?
A) $28.00
B) $24.50
C) $33.00
D) $28.13
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 $0.30 per minute. What is the profit from sales to each of the low-demand consumers?A) $28.00
B) $24.50
C) $33.00
D) $28.13
Question
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 $0.30 per minute. What is the profit from sales to each of the high-demand consumers?
A) $28.00
B) $24.50
C) $33.00
D) $28.13
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 $0.30 per minute. What is the profit from sales to each of the high-demand consumers?A) $28.00
B) $24.50
C) $33.00
D) $28.13
Question
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 $0.30 per minute. What is Always There Wireless's total profit?
A) $11,200
B) $13,200
C) $11,700
D) $12,700
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 $0.30 per minute. What is Always There Wireless's total profit?A) $11,200
B) $13,200
C) $11,700
D) $12,700
Question
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 $0.35 per minute. How many minutes will low-demand consumers purchase?
A) 65
B) 35
C) 75
D) 165
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 $0.35 per minute. How many minutes will low-demand consumers purchase?A) 65
B) 35
C) 75
D) 165
Question
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 $0.35 per minute. How many minutes will high-demand consumers purchase?
A) 65
B) 35
C) 75
D) 165
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 $0.35 per minute. How many minutes will high-demand consumers purchase?A) 65
B) 35
C) 75
D) 165
Question
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 $0.35 per minute. What is the highest fixed fee Always There Wireless can charge without losing the low-demand consumers?
A) $21.13
B) $42.25
C) $28.13
D) $136.13
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 $0.35 per minute. What is the highest fixed fee Always There Wireless can charge without losing the low-demand consumers?A) $21.13
B) $42.25
C) $28.13
D) $136.13
Question
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 $0.35 per minute. What is Always There Wireless's profit from sales for each low-demand consumer?
A) $27.63
B) $37.63
C) $21.13
D) $28.13
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 $0.35 per minute. What is Always There Wireless's profit from sales for each low-demand consumer?A) $27.63
B) $37.63
C) $21.13
D) $28.13
Question
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 $0.35 per minute. What is Always There Wireless's profit from sales for each high-demand consumer?
A) $27.63
B) $37.63
C) $21.13
D) $28.13
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 $0.35 per minute. What is Always There Wireless's profit from sales for each high-demand consumer?A) $27.63
B) $37.63
C) $21.13
D) $28.13
Question
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 $0.35 per minute. What is Always There Wireless's total profit?
A) $11,253
B) $12,052
C) $11,052
D) $8,452
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 $0.35 per minute. What is Always There Wireless's total profit?A) $11,253
B) $12,052
C) $11,052
D) $8,452
Question
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. Which price per minute is the most profitable?
A) $0.35
B) $0.40
C) $0.50
D) $0.60
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. Which price per minute is the most profitable?A) $0.35
B) $0.40
C) $0.50
D) $0.60
Question
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. Which price per minute is the most profitable?
A) $0.35
B) $0.50
C) $0.60
D) $0.70
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. Which price per minute is the most profitable?A) $0.35
B) $0.50
C) $0.60
D) $0.70
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Deck 11: Pricing Policies
1
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 ,where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how many minutes will each customer buy each month?
A) 175
B) 200
C) 2
D) 225
,where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how many minutes will each customer buy each month?A) 175
B) 200
C) 2
D) 225
175
2
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?
A) $200
B) $153.13
C) $306.25
D) $175
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?A) $200
B) $153.13
C) $306.25
D) $175
$153.13
3
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of who has a monthly demand curve for wireless minutes of , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?
A) $153.13
B) $196.88
C) $200
D) $175
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?A) $153.13
B) $196.88
C) $200
D) $175
$153.13
4
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's total profit?
A) $30,626
B) $39,376
C) $40,000
D) $35,000
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's total profit?A) $30,626
B) $39,376
C) $40,000
D) $35,000
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5
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how many minutes will each customer buy each month
A) 200
B) 150
C) 175
D) 250
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how many minutes will each customer buy each monthA) 200
B) 150
C) 175
D) 250
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6
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?
A) $200
B) $150
C) $225
D) $112.5
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, how large of a fixed monthly fee can it charge and still persuade customers to buy their service?A) $200
B) $150
C) $225
D) $112.5
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7
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's profit per customer?
A) $153.13
B) $150
C) $187.50
D) $37.50
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's profit per customer?A) $153.13
B) $150
C) $187.50
D) $37.50
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8
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's total profit?
A) $30,626
B) $30,000
C) $37,500
D) $7,500
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is Always There's total profit?A) $30,626
B) $30,000
C) $37,500
D) $7,500
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9
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in profit per customer compared to when it charges the marginal cost?
A) $6.25
B) $25
C) $3.13
D) $34.37
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in profit per customer compared to when it charges the marginal cost?A) $6.25
B) $25
C) $3.13
D) $34.37
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10
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 , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in total profit compared to when it charges the marginal cost?
A) $1,250
B) $5,000
C) $626
D) $6,874
, where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute, what is the difference in total profit compared to when it charges the marginal cost?A) $1,250
B) $5,000
C) $626
D) $6,874
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11
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?
A) 2500
B) 500
C) 200
D) 600
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?A) 2500
B) 500
C) 200
D) 600
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12
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?
A) $4
B) $7
C) $6
D) $12
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?A) $4
B) $7
C) $6
D) $12
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13
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A) $400
B) $2400
C) $2500
D) $0
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?A) $400
B) $2400
C) $2500
D) $0
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14
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to adults to maximize profits?
A) 2500
B) 500
C) 200
D) 600
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to adults to maximize profits?A) 2500
B) 500
C) 200
D) 600
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15
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?
A) $4
B) $7
C) $6
D) $12
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?A) $4
B) $7
C) $6
D) $12
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16
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from adults?
A) $400
B) $2400
C) $2500
D) $0
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from adults?A) $400
B) $2400
C) $2500
D) $0
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17
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from both students and adults?
A) $2900
B) $2500
C) $2100
D) $4900
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from both students and adults?A) $2900
B) $2500
C) $2100
D) $4900
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18
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater cannot price discriminate. What is the monopolist's profit from both students and adults?
A) $2500
B) $4950
C) $2450
D) $50
and the demand function for adults is . The marginal cost is $2 per ticket. Suppose the movie theater cannot price discriminate. What is the monopolist's profit from both students and adults?A) $2500
B) $4950
C) $2450
D) $50
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19
A movie monopolist sells to students and adults. The demand function for students is and the demand function for adults is . The marginal cost is $2 per ticket. What is the difference in the monopolist's profit when it is able to price discriminate and when it cannot?
A) $2500
B) $400
C) $0
D) $50
and the demand function for adults is . The marginal cost is $2 per ticket. What is the difference in the monopolist's profit when it is able to price discriminate and when it cannot?A) $2500
B) $400
C) $0
D) $50
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20
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 perminute price in dollars. Its marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?
A) 75
B) 175
C) 200
D) 100
and 300 low-demand consumers, each of whose monthly demand curve for minutes of wireless is , where P is the perminute price in dollars. Its marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?A) 75
B) 175
C) 200
D) 100
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21
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. How many minutes will low-demand consumers purchase?
A) 75
B) 175
C) 200
D) 100
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. How many minutes will low-demand consumers purchase?A) 75
B) 175
C) 200
D) 100
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22
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. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
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23
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. What are the profits from sales to each of the low-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. What are the profits from sales to each of the low-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
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24
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. What are the profits from sales to each of the high-demand consumers?
A) $9.38
B) $28.13
C) $153.13
D) $1.00
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. What are the profits from sales to each of the high-demand consumers?A) $9.38
B) $28.13
C) $153.13
D) $1.00
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25
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. What are Always There Wireless's total profits?
A) $3752
B) $11,253
C) $61,252
D) $400
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. What are Always There Wireless's total profits?A) $3752
B) $11,253
C) $61,252
D) $400
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26
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 $0.30 per minute. How many minutes will low-demand consumers purchase?
A) 60
B) 30
C) 70
D) 170
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 $0.30 per minute. How many minutes will low-demand consumers purchase?A) 60
B) 30
C) 70
D) 170
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27
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 $0.30 per minute. How many minutes will high-demand consumers purchase?
A) 60
B) 30
C) 70
D) 170
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 $0.30 per minute. How many minutes will high-demand consumers purchase?A) 60
B) 30
C) 70
D) 170
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28
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 $0.30 per minute. What is the highest fixed fee Always There Wireless could charge without losing the low-demand consumers?
A) $28.13
B) $56.26
C) $24.50
D) $49.00
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 $0.30 per minute. What is the highest fixed fee Always There Wireless could charge without losing the low-demand consumers?A) $28.13
B) $56.26
C) $24.50
D) $49.00
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29
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 $0.30 per minute. What is the profit from sales to each of the low-demand consumers?
A) $28.00
B) $24.50
C) $33.00
D) $28.13
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 $0.30 per minute. What is the profit from sales to each of the low-demand consumers?A) $28.00
B) $24.50
C) $33.00
D) $28.13
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30
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 $0.30 per minute. What is the profit from sales to each of the high-demand consumers?
A) $28.00
B) $24.50
C) $33.00
D) $28.13
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 $0.30 per minute. What is the profit from sales to each of the high-demand consumers?A) $28.00
B) $24.50
C) $33.00
D) $28.13
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31
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 $0.30 per minute. What is Always There Wireless's total profit?
A) $11,200
B) $13,200
C) $11,700
D) $12,700
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 $0.30 per minute. What is Always There Wireless's total profit?A) $11,200
B) $13,200
C) $11,700
D) $12,700
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32
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 $0.35 per minute. How many minutes will low-demand consumers purchase?
A) 65
B) 35
C) 75
D) 165
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 $0.35 per minute. How many minutes will low-demand consumers purchase?A) 65
B) 35
C) 75
D) 165
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33
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 $0.35 per minute. How many minutes will high-demand consumers purchase?
A) 65
B) 35
C) 75
D) 165
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 $0.35 per minute. How many minutes will high-demand consumers purchase?A) 65
B) 35
C) 75
D) 165
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34
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 $0.35 per minute. What is the highest fixed fee Always There Wireless can charge without losing the low-demand consumers?
A) $21.13
B) $42.25
C) $28.13
D) $136.13
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 $0.35 per minute. What is the highest fixed fee Always There Wireless can charge without losing the low-demand consumers?A) $21.13
B) $42.25
C) $28.13
D) $136.13
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35
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 $0.35 per minute. What is Always There Wireless's profit from sales for each low-demand consumer?
A) $27.63
B) $37.63
C) $21.13
D) $28.13
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 $0.35 per minute. What is Always There Wireless's profit from sales for each low-demand consumer?A) $27.63
B) $37.63
C) $21.13
D) $28.13
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36
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 $0.35 per minute. What is Always There Wireless's profit from sales for each high-demand consumer?
A) $27.63
B) $37.63
C) $21.13
D) $28.13
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 $0.35 per minute. What is Always There Wireless's profit from sales for each high-demand consumer?A) $27.63
B) $37.63
C) $21.13
D) $28.13
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37
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 $0.35 per minute. What is Always There Wireless's total profit?
A) $11,253
B) $12,052
C) $11,052
D) $8,452
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 $0.35 per minute. What is Always There Wireless's total profit?A) $11,253
B) $12,052
C) $11,052
D) $8,452
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38
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. Which price per minute is the most profitable?
A) $0.35
B) $0.40
C) $0.50
D) $0.60
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. Which price per minute is the most profitable?A) $0.35
B) $0.40
C) $0.50
D) $0.60
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39
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. Which price per minute is the most profitable?
A) $0.35
B) $0.50
C) $0.60
D) $0.70
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. Which price per minute is the most profitable?A) $0.35
B) $0.50
C) $0.60
D) $0.70
Unlock Deck
Unlock for access to all 39 flashcards in this deck.
Unlock Deck
k this deck
Unlock Deck
Unlock for access to all 39 flashcards in this deck.
