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

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

Quizplus · Accepted Answer

The Answer of 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

Suppose Always There Wireless Serves 100 High-High Demand Wireless Consumers