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 Q^d = 200 - 100P,where P is the per-minute price in dollars and Q is the number of wireless minutes.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

Quizplus · Accepted Answer

At a price of $0.25, the demand can be calculated by substituting P = 0.25 into the demand equation: Q = 200 - 100(0.25) = 200 - 25 = 175.

Always There Wireless Is Wireless Monopolist in a Rural Area