Jonny and Chen Brad Baxter have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the Internet, and they can act as a single- price monopolist if they choose to. Each time the movie is downloaded ,their Internet service provider charges them a fee of $4. They are now arguing about which price to charge customers per download. The accompanying table shows the demand schedule for their film. Price per download Quantity of download demanded $10 8 1 4 2 10 15 a. Calculate the total revenue and the marginal revenue per download. b. They are proud of the film and wants as many people as possible to download it. Which price would they choose? How many downloads would be sold? c. They want as much total revenue as possible. Which price would he choose? How many downloads would be sold?

Jonny and Chen Brad Baxter have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the Internet, and they can act as a single- price monopolist if they choose to. Each time the movie is downloaded ,their Internet service provider charges them a fee of $4. They are now arguing about which price to charge customers per download. The accompanying table shows the demand schedule for their film. Price per download Quantity of download demanded $10 8 1 4 2 10 15 a. Calculate the total revenue and the marginal revenue per download. b. They are proud of the film and wants as many people as possible to download it. Which price would they choose? How many downloads would be sold? c. They want as much total revenue as possible. Which price would he choose? How many downloads would be sold?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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