How large a fixed fee can it charge and still persuade

Reference no: EM133261217

Question: Clearvoice is a wireless telephone monopolist in a rural area. There are 100 consumers in the market, each of whom has a monthly demand curve for wireless minutes of Q^d=100 - 100 P, where P is the per minute price in dollars. The marginal cost of providing wireless service is 10 cents per minute. If Clearvoice charges 40 cents per minute, how large a fixed fee can it charge and still persuade consumers to buy? What is its profit from each consumer? Its total profit? What if the firm charges 10, 20, 30 cents per minute

Reference no: EM133261217

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