Question
Due to the explosive growth in mobile data usage, mobile phone companies are looking for ways to ration the available bandwidth. Some of them are
Due to the explosive growth in mobile data usage, mobile phone companies are looking for ways to ration the available bandwidth. Some of them are experimenting with different pricing schemes.
Consider the case of Adam, a consumer whose monthly demand for mobile internet usage can be summarized by the equation:
QG= 16 - 0.5 P
where QGis the number of gigabytes (GB) used (i.e., quantity demanded) and P is the incremental price per gigabyte, in dollars.
Adam is considering two different service providers, with the following pricing schemes:
- Provider A charges $130 per month for unlimiteddata usage
- Provider B simply charges $12 per GB with no fixed monthly charge and no "free" allowance
Fill in the blanks below with a number, andonlya number.Do not enter any symbols or words. Don't round any intermediate steps, but you may round your answer to the nearest integer, if necessary.
If Adam goes with providerA, then:
- He will useXXXGB per month
- He will have a consumer surplus of $XXX
If Adam goes with providerB, then:
- He will useXXX GB per month
- He will have a consumer surplus of $XXX
Complete the missing XXX figures ?
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