Question: Clear voice faces 100 high-demand consumers, whose demand function is QH = 150 - 100PH, and 400 low-demand consumers, whose demand function is QL =

Clear voice faces 100 high-demand consumers, whose demand function is QH = 150 - 100PH, and 400 low-demand consumers, whose demand function is QL = 50 - 100PL. It has a marginal cost of 10 cents per minute. What is its profit-maximizing menu of two-part tariffs?

Step by Step Solution

★★★★★

3.35 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Its profitmaximizing twopart tariff forlowdemand consumers The monopolist will charge a fee of 320 a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

847-B-E-D-S (3005).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

A certain monopoly has a marginal cost that depends on the quantity produced. The marginal cost is MC = 4Q The marginal revenue curve is: MR = 40 4Q The demand curve is: D = 40 - 2Q Fixed cost of...

A monopolist has a marginal cost function, 6Q 2 + 5Q, and the fixed costs are 25. The demand function is 2P + Q = 510. (a) Find an expression for the profit function in terms of Q. (b) Hence find the...

A company has a marginal cost of equity at 15%, while it pays dividend of 12% on its preferred stock, with an interest payout on a per bond basis of $95 annually. The company is 60% equity (common...

need these fast 1. Which of the following is an example of a positive statement? O A. If this good is bad for you, you should not consume it. O B. If you consume this good, you will get sick. O C....

Individual Case Analysis Four cases are available from Harvard (see first : Case pack of 4 cases available at: http://cb.hbsp.harvard.edu/cbmp/access/49960103 ). Answer each of these questions in...

\f 134 THE BIG SQUEEZE munications Workers of America that has sought to unionize high"tech workers. "They hire whomever Microsoft tells them to put on their payroll. Then they p~ocess their...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

\f 134 THE BIG SQUEEZE munications Workers of America that has sought to unionize high"tech workers. "They hire whomever Microsoft tells them to put on their payroll. Then they p~ocess their...

Reflection : you should be reading the today Saudi Gazette or Arab News Newspaper (AN) . select a topic to talk about, the topic that attracted your attention and the marketing opportunity relevant...

Atlantic Management Systems is a consulting firm that specializes in developing computerized decision support systems for computer manufacturing companies. The firm currently has offices in Chicago,...

How can you improve the tone of business messages?

Electric charges Q = Q, Q = 2Q, and Q3 = 3Q are placed at r = (1,0,0)a, r = (0,1,0)a, and r3 = (0,0,1)a. Find the electric field E at r = (1,1,1)a.

1 6 Northern Corporation invested $ 8 0 0 cash in South Company stock. As a result of this transaction: 0 1 : 4 4 : 1 7 Multiple Choice the balance in the Cash account on Northern Corporation's books...

Refer to Exercise 9.105. a. Using no information about x, estimate and calculate a 95% confidence interval for the mean value of y. [Hint: Use the one-sample t methodology of Section 7.3.] b. Plot...

The U. S. Tobacco Settlement between the major tobacco companies and 46 states caused the price of cigarettes to jump 45 (21%) in November 1998. Levy and Meara (2005) found only a 2.65% drop in...

Calculate the price and cross- price elasticities of demand for coconut oil. The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 9.5p + 16.2pp + 0.2Y, where Q is the quantity...

Compressed APV with Nonconstant Growth Sheldon Corporation projects the following free cash flows (FCFs) and interest expenses for the next 3 years, after which FCF and interest expenses are expected...

Given this information, what is the answer to question 1, "If comparable bonds yields shift up by 15 bps, using the bonds duration, what will be the market value change of this bond? A. Spread...

Lanker Enterprises has bonds on the market making semi-annual payments, with 15 years to maturity, a par value of $1,000, and a price of $847.44. At his price, the bonds yield 9.5 percent. What must...