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Clearvoice, A Wireless Telephone Monopolist Has 100 Consumers

Submitted by • October 19, 2018

Clearvoice, a wireless telephone monopolist has 100 consumers, each of whom has a monthly demand curve for wireless minutes ofQ=300-100Pwhere P is the per-minute price in dollars. The marginal cost of providing wireless service is $0. 30 per minute. Instructions: Round your answers to 2 decimal places. a. Suppose the wireless telephone monopolist charges $0. 30 per minute. How large a fixed fee can it charge and still persuade consumers to buy? $. b. What is its profit from each consumer? $. c. What is its total profit? $. d. What would be its total profit with a per-minute charge of $0. 40? $. e. What would be its total profit with a per-minute charge of $0. 50? $. f. What would be its total profit with a per-minute charge of $0. 60? $.

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Voted by Simon Brooke

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