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Suppose Always There Wireless serves 100 high-high demand wireless consumers, each of whose monthly demand curve for minutes of wireless service is Dh=200-100P. and 300 low-demand consumers, each of whose monthly demand curve for minutes of wireless is Dl=100-100P, 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, and the maximum possible fixed fee that low-demand customers will pay. What is Always There Wireless's producer surplus from sales for each low-demand consumer.

Microeconomics, Economics

  • Category:- Microeconomics
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