At the conclusion of a marketing study for the POW! Patrol mobile game, you've settled on an optimal quantity of q* = 3 thousand sales per month, selling your game at p = 7 dollars cach. Your demand function is shown below. D(q) = -q² +16 Your marketing director is offering you a $25,000 budget to implement a price discrimination plan. 5 price p ($/unit) 10 5 lo 1 2 3 quantity a (thousands) 5 CALCULATE the consumer surplus, and EXPLAIN in 1-2 sentences whether this would be a wise investment. ILLUSTRATE your conclusion on the graph as well.

At the conclusion of a marketing study for the POW! Patrol mobile game, you've settled on an optimal quantity of q* = 3 thousand sales per month, selling your game at p = 7 dollars cach. Your demand function is shown below. D(q) = -q² +16 Your marketing director is offering you a $25,000 budget to implement a price discrimination plan. 5 price p ($/unit) 10 5 lo 1 2 3 quantity a (thousands) 5 CALCULATE the consumer surplus, and EXPLAIN in 1-2 sentences whether this would be a wise investment. ILLUSTRATE your conclusion on the graph as well.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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