Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of who has a monthly demand curve for wireless minutes of , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?
A) $153.13
B) $196.88
C) $200
D) $175

Question

Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of who has a monthly demand curve for wireless minutes of  , where P is the per-minute price in dollars. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute, what is Always There's profit per customer?
A) $153.13 
B) $196.88 
C) $200 
D) $175

Quizplus · Accepted Answer

The Answer is A

Always There Wireless Is Wireless Monopolist in a Rural Area