32. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. How many minutes will high-demand consumers
purchase?
D. 100
33. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. How many minutes will low-demand consumers
purchase?
D. 100
34. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. How much can Always There Wireless charge as a fixed
fee without losing the low-demand consumers?
D. $1.00
35. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what are the profits from sales to each of
the low-demand consumers?
A. $9.38
36. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what are the profits from sales to each of
the high-demand consumers?
D. $1.00
37. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.25 per minute. What are Always There Wireless’s total profits?
D. $400
38. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. How many minutes will low-demand consumers
purchase?
A. 60
39. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. How many minutes will high-demand consumers
purchase?
A. 60
40. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. What is the highest fixed fee Always There Wireless
could charge without losing the low-demand consumers?
A. $28.13
41. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is the profit from sales to each of the
low-demand consumers?
D. $28.13
42. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is the profit from sales to each of the
high-demand consumers?
A. $28.00
43. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is Always There Wireless’s total
profit?
A. $11,200
44. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. How many minutes will low-demand consumers
purchase?
D. 165
45. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. How many minutes will high-demand consumers
purchase?
A. 65
46. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. What is the highest fixed fee Always There Wireless can
charge without losing the low-demand consumers?
D. $136.13
47. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is Always There Wireless’s profit from
sales for each low-demand consumer?
D. $28.13
48. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is Always There Wireless’s profit from
sales for each high-demand consumer?
D. $28.13
49. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always
There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee
that it can without losing the low-demand consumers, what is Always There Wireless’s total
profit?
D. $8,450
50. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. If Always There
Wireless charges the highest fixed fee that it can without losing the low-demand consumers,
which of the following is the most profitable price per minute?
A. $0.35
51. Suppose Always There Wireless serves 100 high-demand wireless consumers, who each
have a monthly demand curve for wireless minutes of
Q
dH
= 200 – 100
P
, and 300 low-demand
consumers, who each have a monthly demand curve for wireless minutes of
Q
dL
= 100 – 100
P,
where
P
is the per-minute price in dollars. The marginal cost is $0.25 per minute. If Always There
Wireless charges the highest fixed fee that it can without losing the low-demand consumers,
which of the following is the most profitable price per minute?
D. $0.57
52. Bundling:
D. is the practice of selling different goods to different types of consumers at different prices.
53. Firms bundle their products because:
A. it is technologically efficient to do so.
54. Mixed bundling:
A. is the practice of selling several products together as a package.
55. Bundling always increases a multi-product monopolist’s profit:
A. whenever the marginal rate of substitution is decreasing.
Essay Questions
56. Discuss the differences between perfect and imperfect price discrimination and the
benefits of each to a monopolist.
57. Explain bundling and mixed bundling and the benefits to a multi-product monopolist of
such packaging schemes.
