How much consumer surplus would obtain with each provider

Reference no: EM13237981

A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number 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. how many minutes would your friend spend on the phone with each provider?

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

d. How much consumer surplus would he obtain with each provider?

e. Which provider would you recommend that your friend choose?

Reference no: EM13237981

Questions Cloud

What is the gnp number refer to is nominal gnp : In a 1990 article assessing the 1980's, Time reported that: "The good news is that U.S. gross national product doubled during the 1980s, from $2.7 trillion to $5.3 trillion." The GNP number they refer to is nominal GNP.

What is the vertical deflectio of the mass : A uniform upward directed electric field of magnitude 1.4*10^-6 N/C has been setup between tow horizontal plates by charging the lower plate positively abnd the lower plate negatively, what is the vertical deflectio of the mass when it exits the pl..

Compare a specific example of life in ancient greece : Compare a specific example of life in Ancient Greece or the Hellenic world to that found in contemporary life in the U.S. Describe one way that you see a particular tenet of Greek philosophy reflected in the modern Western worldview

Describe how the ideals of the homeric epics : If you were a Greek living during this time period, describe how the ideals of the Homeric epics – as reflected in literature, sculpture, and even pottery – might have shaped your self-identity.

How much consumer surplus would obtain with each provider : A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee

How was the narrative of the civil war : How was the ‘narrative’ of the Civil War different in the North and South after the conflict and why was each narrative important?

Find the velocity of m1 after 1.80 s : In the Atwood machine shown below, m1 = 2.00 kg and m2 = 5.50 kg, How far will m1 descend below its initial level and Find the velocity of m1 after 1.80 s

What is the net flux of the uniform electric field : What is the net flux of the uniform electric field of Exercise 1.15 through a cube of side 20 cm oriented so that its faces are parallel to the coordinate planes?

Explain how this observation is consistent : When a glass rod is rubbed with a silk cloth, charges appear on both. A similar phenomenon is observed with many other pairs of bodies. Explain how this observation is consistent with the law of conservation of charge.

User Account

All Pages