How much can always there wireless charge as a fixed fee

Reference no: EM13239530

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 $0.25 per minute.

a. How many minutes will high-demand consumers purchase?

b. How many minutes will low-demand consumers purchase?

c. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?

d. What are the profits from sales to each of the low-demand consumers?

Reference no: EM13239530

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