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 $0.35 per minute. What is the highest fixed fee Always There Wireless can charge without losing the low-demand consumers?

A) $21.13
B) $42.25
C) $28.13
D) $136.13

Correct Answer:

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