On Wednesday evenings In October 2021, each episode of The Masked Singer was typically watched by 4.6 million viewers, while each episode of The Conners was typically watched by 3.6 million viewers. Your marketing services firm has been hired to promote Gauss Jordan sneakers by buying at least 70 commercial spots during episodes of The Masked Singer and The Conners. You have been quoted a price of $400,000 per spot for The Masked Singer and $100,000 per spot for The Conners. Gauss Jordan, Inc.'s advertising budget for TV commercials is $26,000,000, and it would like at least 75% of the total number of spots to appear on The Masked Singer. How many spots should you purchase on each show to maximize exposure? HINT [Calculate exposure as Number of ads x Number of viewers.] (If an answer does not exist, enter DNE.) The Masked Singer 55 The Conners x Ne PREVIOUS ANSWERS ASK YOUR TEACHER PRACTICE ANOTHER

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $1,000 per unit to install and maintain software at this client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit that results from charging this client a single per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased. Construct this report, including in it a recommendation that would result in even higher profits.

Netflix customers in Australia could soon be facing steeper monthly charges. The popular streaming service on Monday confirmed that it recently tested higher subscription prices for new customers in Australia. The company—which has nearly 100 million global subscribers and expanded to Australia in 2015—has reportedly tested raising prices for new subscribers by as much as three Australian dollars (AU). Netflix’s test resulted in some Australian customers seeing price increases for the streaming service’s Basic plan (going from AU$8.99 to AU$9.99 per month), while Netflix’s Standard plan increased AU$2 to AU$13.99 and the Premium plan increased AU$3 to AU$17.99 per month, according to The Australian. Netflix confirmed the tests, but emphasized that it has not yet formally announced any permanent price increases. “We continuously test new things at Netflix and these tests typically vary in length of time,” the company said in a statement. “In this case, we are testing slightly…

Realizing that there is a great potential for increased tax revenue, government officials in Homeyville began discussing how they could align Airbnb rentals with hotel stays from a tax perspective. Fast-forward to 2018, at which time Homeyville has finally made tax arrangements with Airbnb to levy a $40-per-room tax on rentals. However, now the market conditions have changed. More hosts have now entered the Airbnb market, and awareness of this hotel alternative has increased demand. The following graph shows the demand and supply curves for Airbnb rentals in 2018. Use the green rectangle (triangle symbols) to illustrate the area representing the revenue raised by a $40-per-room tax. Then use the black point (cross symbol) to shade the area representing the deadweight loss generated by this tax. PRICE (Dollars per rental) 200 190 180 Demand 2018 Tax Wedge 170 + 160 150 140 130 120 110 100 0 + 40 80 120 160 200 240 280 RENTALS (Rooms per day) Supply 2018 320 360 400 Tax Revenue…