A newspaper considers offering a new subscription service that wil send news articles to readers by emal Khas two types of potential users, students and executives. The yearty demand functions for articles x are as follows Pe= 100 Prices are ineasured in cents The newspaper has a zero marginal cost of sending articles via email It camot identiy which users are executives and which are students Suppose that it offers two packages a basc package (targeted to students) that alows up to 0 articles per year, and a premum package that allows up to 100 articles per year. What is the maximum fee that the newspaper can charge for the premium package ift offers the basic package at the highest fee that the students are wiling to pay? - x for executives Ps 80-x for students. )50 O (b) 16 O (c) 32 O (4) 34

A newspaper considers offering a new subscription service that wil send news articles to readers by emal Khas two types of potential users, students and executives. The yearty demand functions for articles x are as follows Pe= 100 Prices are ineasured in cents The newspaper has a zero marginal cost of sending articles via email It camot identiy which users are executives and which are students Suppose that it offers two packages a basc package (targeted to students) that alows up to 0 articles per year, and a premum package that allows up to 100 articles per year. What is the maximum fee that the newspaper can charge for the premium package ift offers the basic package at the highest fee that the students are wiling to pay? - x for executives Ps 80-x for students. )50 O (b) 16 O (c) 32 O (4) 34

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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Industrial Economics
A newspaper considers offering a new subscription service that will send news articles to readers by email. has tao types of potential users,
students and executives. The yearly demand functions for articles x are as follows PE
Prices are measured in cents. The newspaper has a zero marginal cost of sending articles via email It camot identity which users are executives and
which are students Suppose that it offers two packages: a basic package (targeted to students) that alows up to 80 articles per year, and a premium
package that allows up to 100 articles per year. What is the maimum fee that the newspaper can charge for the premium package if it offers the basic
package at the highest fee that the students are willing to pay?
100 - x for executives: Ps 80 - x for students
O (a) 50
O (b) 16
O (c) 32
O (0) 34
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