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Always There Wireless Is Wireless Monopolist in a Rural Area

Question 1

Multiple Choice

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 Qd = 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 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

Correct Answer:

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