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

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

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 9PA

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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 3 4 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?
Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…
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. Quantity of download demanded Price per download $10 8 3 4 6 2 10 15 d. They want to maximize profit. Which price would he choose? How many downloads would be sold?
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One company has monopolized the market for cell phones. How does this impact the overall market for cell phones?