You work for Verizon and are tasked with analyzing potential price schedules for a monthly data plan. Assume that there is only one type of consumer, who has a monthly demand for data:

Qd?=3?151?P,

where Qd is in gigabytes (GB) of data. The marginal cost of each GB of data is MC = $7.50.

A. Uniform Pricing: Your first plan has the customer pay a unit price for data (GB of data are made up of lots of MB of data, and pricing is continuous).

i. What price (per GB) of data usage will maximize profit? How much profit will you make? Show your work below.

ii. Show the result in the graph below, shading the region corresponding to profit (assuming fixed costs are zero so that producer surplus and profit are the same).

50 40 Q = 3 -P/15 MC=$7.50 O O 2 3 Q (GB)50 40 Q = 3 -P/15 MC=$7.50 O O 2 3 Q (GB)