How much consumer surplus would be obtain with provider

Assignment Help Microeconomics

Reference no: EM13236998

A friend of your is considering two cell phone service providers. Provider A charges $120 per month for the service regadless of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd=150-50P, where P is the price of a minute.

a. With each provider, what is the cost to your friend of an extra minute on the phone?

b. In light of your answer to (a), how many minutes would your friend talk on the phone with each provider?

c. How much would he end up paying each provider every month?

d. How much consumer surplus would be obtain with provider?

e. Which provider would you recommend that your friend choice? Why?

Reference no: EM13236998

Questions Cloud

Determine the two resistances : Two resistors have resistances R(smaller) and R(larger), where R(smaller)

Why does the united states have an absolute advantage : In Izodia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods Which country enjoys a comparative advantage in food

Describe the long-term productivity in the united states : Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short

Explain iupac names of the missing reactants : Predict the chemical formulas and IUPAC names of the missing reactants or products, to complete the following chemical reactions

How much consumer surplus would be obtain with provider : A friend of your is considering two cell phone service providers. Provider A charges $120 per month for the service regadless of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls.

Find the distance between the antinodes : A pipe is open at both ends. Its length is 22.81 cm. If I excite standing waves in the pipe by blowing air over one of its ends, Find the distance between the antinodes at the two ends of the pipe

What would be the economic interpretation of the variable a : Supposed a firm faces an inverse demand function of p(y)=20-y and a total cost function of c(y) = a + y^2 What would be the economic interpretation of the variable a

Estimate the average price of gas when a barrel of oil costs : hypothesis, critical values, or calculations you used to get your answer to receive full credit. You will have to decide which variable is the dependent variable and which variable is the independent variable Use 3 decimals.

Explain the final temperature of the coffee cup : A student creates a coffee cup calorimeter for lab. The coffee cup contains 30 mL of water at a temperature of 55.5 °F. He then adds 65.4mL of water, at 165.5 °F, into the coffee cup. The final temperature of the coffee cup is 120.3 °F.

User Account

All Pages