Always There Wireless Is Wireless Monopolist in a Rural Area

question 32

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 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 and the largest fixed fee that it can,what is Always There's total profit?

• A) $30,625
• B) $39,375
• C) $40,000
• D) $35,000

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