Suppose Always There Wireless Serves 100 High-High Demand Wireless Consumers

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

A) $9.38
B) $28.13
C) $153.13
D) $1.00

Correct Answer:

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