Click on the icon to read the news clip, then answer the following questions. The graph shows the market for Microsoft Windows. >>> The graph will plot data needed to answer this question. If the marginal cost of making a copy of the full version of Windows that includes Interned Explorer (IE) is zero, Microsoft will set the price of Windows at $ per copy. If the average fixed cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. If the marginal cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. It in Microsoft's self-interest to set a different price for a version stripped of IE if the marginal cost of producing the stripped version differs from the version that includes IE. 800- 720- 640- 560- 480- 400- 320- 240- 160- 80- 0- Price (dollars per copy) MR 10 20 30 40 50 60 70 80 Quantity (thousands of copies of Windows per month) >>> Click on the graph to work out the answer. 0 D

Click on the icon to read the news clip, then answer the following questions. The graph shows the market for Microsoft Windows. >>> The graph will plot data needed to answer this question. If the marginal cost of making a copy of the full version of Windows that includes Interned Explorer (IE) is zero, Microsoft will set the price of Windows at $ per copy. If the average fixed cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. If the marginal cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. It in Microsoft's self-interest to set a different price for a version stripped of IE if the marginal cost of producing the stripped version differs from the version that includes IE. 800- 720- 640- 560- 480- 400- 320- 240- 160- 80- 0- Price (dollars per copy) MR 10 20 30 40 50 60 70 80 Quantity (thousands of copies of Windows per month) >>> Click on the graph to work out the answer. 0 D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows the daily demand schedule for round-trip train commutes between Dallas and Los Angeles for travelers: Demand Schedule of Business Travelers Price QD $1,100 310 $810 510 $510 810 $310 1,100 Suppose a train line's marginal cost per seat for the round-trip is $300. For profit-maximization, how much should the train-line charge per round-trip? Show your process using the half-way rule of Marginal Revenue for a monopoly.
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