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

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

Quizplus · Accepted Answer

The Answer is B

Always There Wireless Is Wireless Monopolist in a Rural Area