Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

A friend of yours is considering two providers of cell phone services. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd= 150 - 50 P, where P is the price of a minute.

a. With each provider, what is the cost to your friend of an extra minute on the phone?

b. In light of your answer to (a), how many minutes would your friend spend on the phone with each provider?

c. How much would he end up paying each provider every month?

d. How much consumer surplus would he obtain with each provider? (Hint: Graph the demand curve and recall the formula for the area of a triangle.)

e. Which provider would you recommend that your friend choose? Why?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M948901

Have any Question? 


Related Questions in Microeconomics

Question course project online technology conferencethe

Question: Course Project: Online Technology Conference The final project is a presentation for an imaginary technology conference called in order to evaluate the impact of technology on culture. Students will pose questi ...

Question - in fall 2013 apple loaned its sapphire glass

Question - In fall 2013, Apple loaned its sapphire glass supplier $578 million to set up a manufacturing plant to produce the glass for the new iPhone 6. In November 2014, Apple's glass supplier lost the contract and pro ...

Question consider the following parameters that describe an

Question: Consider the following parameters that describe an economy: C = 50 + 0.8YD I = 70 G = 200 TR = 100 t = 0.2 a. Calculate the equilibrium level of income and the multiplier in this model. b. Calculate the budget ...

Question what is the relationship if any between production

Question: What is the relationship (if any) between production technology (i.e. productivity) and cost ? In your analysis define the various cost structures (short-run & long-run); Describe the difference between account ...

Assignment - read the following fictional scenarioand write

Assignment - Read the following fictional scenarioand write a report that addresses the questions shown below: The managing director of a Belgian outdoor catering company has to decide whether or not to lease new capital ...

Questions - 1 externalities united airlines flies in and

Questions - 1. Externalities. United Airlines flies in and out of Logan Airport carrying people to cities throughout the world. Their flights are noisy and spread pollution over East Boston and Revere, disturbing the res ...

Question use the web to find a print advertisement you

Question: Use the web to find a print advertisement you would like to analyze. You may conduct a Google image search for a print ad for a product that you are interested in. and answer at least 3 of the following questio ...

Question scenario using the same organization and the

Question: Scenario: Using the same organization and the lemonade drink from the Week 4 Learning Team assignment, develop an analysis for the bank. The bank will be using this information to make their final decision on h ...

Question assume that your probability of surviving an

Question: Assume that your probability of surviving an accident is greater in a car equipped with certain safety features. If so, what will be the likely effect on the number of accidents? Give a numerical example showin ...

Question most lenders charge an up-front fee called

Question: Most lenders charge an up-front fee called origination fee, which is added to what borrower owes and is described as "points," e.g., 1 point is 1%. The lenders are required by law to account for the origination ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As