Problem 19 A publishing company has a monopoly in the sales of football cards. According to its estimates, the company's inverse demand function is p = 0.4-0.01q. The company's marginal cost is constant at £0.08. Suppose that the company wants to sell football cards in albums only. Using such a block pricing approach, what will be optimal price that the firm needs to set to maximize its profits? a) £5.12 b) £7.68 c) £2.56 d) £15.36 e) £3.84

Problem 19 A publishing company has a monopoly in the sales of football cards. According to its estimates, the company's inverse demand function is p = 0.4-0.01q. The company's marginal cost is constant at £0.08. Suppose that the company wants to sell football cards in albums only. Using such a block pricing approach, what will be optimal price that the firm needs to set to maximize its profits? a) £5.12 b) £7.68 c) £2.56 d) £15.36 e) £3.84

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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