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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
send ans fast
Transcribed Image Text: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
Successivo
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education