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

question 18

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 $0.35 per minute.If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers,what is Always There Wireless's profit from sales for each low-demand consumer?

• A) $27.63
• B) $37.63
• C) $21.13
• D) $28.13

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Definitions:

Complements

Goods or services that are used together with another, such that the demand for one increases when the price of the other decreases.

Video Games

Electronic games played through the use of computers, consoles, or other devices, often involving interactive and multimedia elements.

E-books

Digital formats of written content that can be read on computers, e-readers, or other electronic devices.

Normal Goods

Normal goods are those whose demand increases as consumer income increases, reflecting a direct relationship between income and the demand for these goods.