Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, 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

B. $56.26

C. $24.50

D. $49.00

C. $24.50

Economics

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