Assume that you own the only phone company in a small town and there is one resident of the town who can only buy from you (fortunately they don't know they could hold out for a better deal)

Economics Oct 16, 2020

Assume that you own the only phone company in a small town and there is one resident of the town who can only buy from you (fortunately they don't know they could hold out for a better deal). That resident's monthly demand for long distance minutes is . Your cost for providing these minutes is a. If you can only charge a single per-minute price, what is the optimal price per minute for you to charge in order to maximize profits?