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    Economics - Consumer Surplus

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    Suppose that telephone co. 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 Atlanta area is estimated to be P = 100 - 33Q and the marginal cost of providing wireless services to the area is $1 per minute. Compute consumer surplus when the telephone co. charges an optimal two-part price.
    A. $0
    B. $74.25
    C. $148.50
    D. There is insufficient information to compute consumer surplus

    Please show step/calculations.

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    https://brainmass.com/economics/cost-benefit-analysis/economics-consumer-surplus-194870

    Solution Preview

    Consumer Surplus is defined as the area under the demand curve but above the price line.

    In other words, consumer surplus = ...

    Solution Summary

    The expert examines the consumer surplus in economics.Neat, step-wise solution is provided.

    $2.19