Suppose Always There Wireless Serves 100 High-High Demand Wireless Consumers,each

question 49

Multiple Choice

Suppose Always There Wireless serves 100 high-high demand wireless consumers,each of whose monthly demand curve for minutes of wireless service is and 300 low-demand consumers,each of whose monthly demand curve for minutes of wireless is ,where P is the per-minute price in dollars.Its marginal cost is $0.25 per minute.Suppose Always There Wireless charges $0.35 per minute.What is Always There Wireless's profit from sales for each high-demand consumer?

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

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Definitions:

Net Cash Inflow

The difference between a company's cash receipts and its cash disbursements during a specific period.

Cumulative Surplus

The total amount of net income retained by a company over time, which has not been distributed to shareholders as dividends.

Minimum Cash Balance

The least amount of cash a company needs on hand to meet its immediate operational expenses and financial obligations.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.