Suppose Always There Wireless Serves 100 High-Demand Wireless Consumers,who Each

question 29

Multiple Choice

Suppose Always There Wireless serves 100 high-demand wireless consumers,who each have a monthly demand curve for wireless minutes of Q^d_H = 200 - 100P,and 300 low-demand consumers,who each have a monthly demand curve for wireless minutes of Q^d_L = 100 - 100P,where P is the per-minute price in dollars.The marginal cost is $0.25 per minute.If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers,which of the following is the most profitable price per minute?

• A) $0.35
• B) $0.40
• C) $0.50
• D) $0.60

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