Suppose That Verizon Wireless Has Hired You as a Consultant

question 42

Multiple Choice

Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services.Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 33Q and the marginal cost of providing wireless services to the area is $1 per minute.What is the optimal two-part price that you would suggest to Verizon?

• A) Charge a fixed fee = $95.5 and a usage fee of $1 per minute.
• B) Charge a fixed fee = $3 and a usage fee of $0.33 per minute.
• C) Charge a fixed fee = $148.50 and a usage fee of $1 per minute.
• D) Charge a fixed fee = $3 and a usage fee of $3 per minute.

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Definitions:

Successfully Treat

To effectively manage or cure a disease or condition, leading to the restoration of health or improvement in symptoms.

Psychotherapy Works

Psychotherapy involves therapeutic techniques to treat mental health problems and emotional challenges by understanding and changing behavior, thoughts, emotions, and perceptions.

Mild Psychological Problems

Mild Psychological Problems denote less severe mental health issues that can impact daily living but do not significantly impair functioning, such as minor anxiety or depression.

Formal Therapy

Structured psychological treatment provided by a professional therapist in a clinical setting to address mental health issues.