Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set
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Question:
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individuals inverse demand for wireless services in the greater Boston area is estimated to be P = 100 - 33Q and the marginal cost of providing wireless services to the area is $1 per minute What is the optimal two-part price that you would suggest to Verizon?
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