Always There Wireless Is Wireless Monopolist in a Rural Area

question 17

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 ,where P is the per-minute price in dollars.The marginal cost of providing the wireless service is $0.25 per minute.If Always There charges $0.50 per minute,how large of a fixed monthly fee can it charge and still persuade customers to buy their service?

• A) $200
• B) $150
• C) $225
• D) $112.5

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