Question 4: The Baxter brothers - Bob, Bill, Ben and Brad – have just made a documentary movie about their basketballteam. They are thinking about making the movie available for download on the internet. They can act as a monopolist ifthey choose to do so. Each time the movie is downloaded, their Internet Service Provider charges them a fee of $4. TheBaxter brothers are arguing about which price to charge the customer per download. Here is the demand schedule fortheir film:Quantity of DownloadsDenandedPrice ofDownload$1046.21015a) Calculate the total revenue and marginal revenue per download.PriceQuantityTRMR$106.31015b) Bill is proud of the film and wants as many people as possible to download it. What price would he choose?How many downloads would be sold?c) Bob wants as much total revenue as possible. What price would he choose? How many downloads would besold?d) Ben wants to maximize profits. What price would he choose? How many downloads would be sold?e) Brad wants to charge the efficient price. What price would he choose? How many downloads would besold?88

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Question 4: The Baxter brothers - Bob, Bill, Ben and Brad - have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the internet. They can act as a monopolist if they choose to do so. Each time the movie is downloaded, their Internet Service Provider charges them a fee of $4. The Baxter brothers are arguing about which price to charge the customer per download. Here is the demand schedule for their film: Price of Download $10 Quantity of Downloads Demanded 3 6 10 15 a) Calculate the total revenue and marginal revenue per download. Price Quantity TR MR $10 6 3 6. 10 4 15 b) Bill is proud of the film and wants as many people as possible to download it. What price would he choose? How many downloads would be sold? c) Bob wants as much total revenue as possible. What price would he choose? How many downloads would be sold? d) Ben wants to maximize profits. What price would he choose? How many downloads would be sold? e) Brad wants to charge the efficient price. What price would he choose? How many downloads would be sold? 6429

Question 4: The Baxter brothers - Bob, Bill, Ben and Brad - have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the internet. They can act as a monopolist if they choose to do so. Each time the movie is downloaded, their Internet Service Provider charges them a fee of $4. The Baxter brothers are arguing about which price to charge the customer per download. Here is the demand schedule for their film: Price of Download $10 Quantity of Downloads Demanded 3 6 10 15 a) Calculate the total revenue and marginal revenue per download. Price Quantity TR MR $10 6 3 6. 10 4 15 b) Bill is proud of the film and wants as many people as possible to download it. What price would he choose? How many downloads would be sold? c) Bob wants as much total revenue as possible. What price would he choose? How many downloads would be sold? d) Ben wants to maximize profits. What price would he choose? How many downloads would be sold? e) Brad wants to charge the efficient price. What price would he choose? How many downloads would be sold? 6429

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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