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

question 28

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.Suppose Always There Wireless charges $0.25 per minute.If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers,what are the profits from sales to each of the high-demand consumers?

• A) $9.38
• B) $28.13
• C) $153.13
• D) $1.00

---

Definitions:

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Services

Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation.

Brain Drain

Refers to the emigration of highly skilled or qualified people from a particular country or region to another, often for better pay or conditions.

Developing Countries

Nations with a lower level of industrialization, a lower standard of living, and often a lower Human Development Index (HDI) compared to developed countries.