1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kompoz [17]
3 years ago
10

Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose

that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 25Q 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?
Business
1 answer:
goldfiish [28.3K]3 years ago
4 0

Answer:

The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99

Explanation:

Solution

For us fully maximize profit under two part price It should gives  that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.

Now,

marginal cost= MC  = 1 and P = 100 - 25Q.

Thus,

P = MC => 100 - 25Q = 1 => Q = 2

Then,

The Consumer surplus is the above area Price of  line which is (iP = 1) and below is the curve of demand

Now,

P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height

= (1/2)*(100 - 1)*2 = 99

Therefore, Fixed fee or The Lump Sum fee = 99

However, the  Optimal two part pricing is denoted by:

The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99

You might be interested in
Because Mike is only accountable for the $20,000 he invested in his friend Matt's company, the
Arlecino [84]
The answer is limited liability partnership
7 0
3 years ago
Assignment Background Ellie Johnson Associates surveys American eating habits. The company's 1) Using the General Journal tab, c
Sav [38]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

<em>You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.</em>

<em> </em>

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
5 0
3 years ago
A business may decide to pay employee salaries every week, every two weeks, twice a month, or once a month.
shtirl [24]

Answer:

True.

Explanation:

A business can choose to pay their employees a salary of 1. Weekly 2. Bi-weekly 3. Bi-monthly 4. Monthly. The longer the time for each paycheck, means that you will get payed more each paycheck but less frequently.

5 0
3 years ago
If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this wo
luda_lava [24]

Answer: Option (C) is correct.

Explanation:

Correct Option: Political business cycle

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.

These cycles are present in macroeconomic variables such inflation rate, output and unemployment. There are two types of regime follow in this cycle are as follows:

(i) Regime A consist of expansionary polices which results in a economic growth and inflation. If the inflation rate is high enough then there is a withdrawal of policy.

(ii) Regime B consist of contractionary polices which results in reducing economic growth and inflation. It will become voted out if the unemployment is too high, replaced by Regime A. It generally lead to downward movement of the cycle.

7 0
3 years ago
Joe received a DUI violation while partying last Christmas and he was found guilty by the court. His real estate license is due
Kazeer [188]

Answer:

Yes, Joe needs to disclose to the commission about his violation.

Explanation:

Driving under the influence (DUI) is the crime or offense of driving or operating a motor vehicle while impaired by alcohol or other drugs to a level that renders the driver incapable of operating a motor vehicle safely.

if the defendant violated probation by breaking a law, the probation revocation hearing will probably take place after the new offense has been disposed of.

Defendants are entitled to written notification of the time, place, and reason for the probation revocation hearing.

For Joe to be able to renew his real estate license he has to speak for a qualified attorney who will plead his case on his behalf.

5 0
3 years ago
Other questions:
  • Rank the 1040 forms in order from simplest to most complex. a. 1040-A, 1040-EZ, 1040 b. 1040-EZ, 1040, 1040-A c. 1040-EZ, 1040-A
    9·2 answers
  • A garment manufacturing company makes 380,000 articles per year. Each article takes 95 minutes of direct labor at the rate of $9
    15·1 answer
  • Peter, a passionate athlete, uses sports shoes manufactured by Friction Shoes Inc. because of their high quality soles. When Fri
    7·1 answer
  • 1. What is the difference between fixed, variable, and periodic costs?
    15·1 answer
  • Holden Evan, Inc. is a large multinational consumer goods company. It has recently acquired Smoothsayer, a beauty cream for wome
    12·1 answer
  • Which of the following are advantages of working for a for-profit healthcare facility? Check all of the boxes that apply.
    13·1 answer
  • R. E. Lee recently took his company public through an initial public offering. He is expanding the business quickly to take adva
    14·1 answer
  • Select the pairing that is correctly matched. A. Preferred stock: may be purchased by converting common stock shares into prefer
    15·1 answer
  • Help please Briefly explain how technology affects promotional strategies.
    14·1 answer
  • As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!