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

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

Quizplus · Accepted Answer

The Answer of 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

Always There Wireless Is Wireless Monopolist in a Rural Area