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

question 25

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) $0.45
• B) $0.49
• C) $0.53
• D) $0.57

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Definitions:

UCC Statute of Frauds

A section under the Uniform Commercial Code that requires certain types of contracts to be in writing to be enforceable, particularly those involving the sale of goods over a certain value.

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Course of Performance

A term in contract law referring to the conduct between contracting parties that is consistent with their agreement, influencing future interpretations of the contract terms.

Course of Dealing

A sequence of actions or conduct between parties in a business or legal relationship that establishes a common basis for understanding future transactions.