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Suppose that VerizonWireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individuals' inverse demand for wireless services in the greater Boston area is estimated to be P = 100 - 33Q and the marginal cost of providing wireless services to the area is $1 per minute. What is the optimal two-part price that you would suggest to Verizon?
A. Charge a fixed fee = $95.5 and a usage fee of $1 per minuteB. Charge a fixed fee = $3 and a usage fee of $0.33 per minuteC. Charge a fixed fee = $148.50 and a usage fee of $1 per minuteD. Charge a fixed fee = $3 and a usage fee of $3 per minute
I know that C is the correct answer please show the math that gets us to C.
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if the price elasticity of demand for a product is -5, and the income elasticity of demand for the product is 2.5. If a .5% decrease in product price as accompanied by a 1% decrease in consumer income, the firm's total sales will increase, be the ..
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The quantity q of grapefruits demanded at price p is given by q = 30-3p and the supply schedule by q = 6p. The government imposes a quantity tax at some rate t, which it collects from buyers. What is the smallest tax rate that will result in no grape..
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analyze and outline the three most likely reasons for growing food insecurity in the united states. do you think food
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keynesian economists favor active policymaking based on the phillips curve and nairu theories. these theories purport a
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a firm produces digital watches on a single production line serviced during one daily shift the total output of watches
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