Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. The profit maximizing two-part tariff results in the firm selling
A)4.5 hours.
B)10 hours.
C)5 hours.
D)8 hours.

Question

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The Answer of Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. The profit maximizing two-part tariff results in the firm selling
A)4.5 hours.
B)10 hours.
C)5 hours.
D)8 hours.

Suppose All Individuals Are Identical, and Their Monthly Demand for Internet