Say I start a streaming service (called Dizzmal, which offers only documentaries about economists). My only cost will be paying publishers $2 for every documentary my customers stream. I can charge an annual membership fee. I have also determined that half my demanders have the following demand: Low Demand: q₁ = 50-5p (p = 10 -0.2q) While the other half have this demand: High Demand: 9H = 60-4p (p = 15 -0.25q) Assuming I want to attract both high and low demanders to become members, what price should I charge for the annual membership and what price should I charge to watch each movie. What will profit be for each low and each high demander?

Say I start a streaming service (called Dizzmal, which offers only documentaries about economists). My only cost will be paying publishers $2 for every documentary my customers stream. I can charge an annual membership fee. I have also determined that half my demanders have the following demand: Low Demand: q₁ = 50-5p (p = 10 -0.2q) While the other half have this demand: High Demand: 9H = 60-4p (p = 15 -0.25q) Assuming I want to attract both high and low demanders to become members, what price should I charge for the annual membership and what price should I charge to watch each movie. What will profit be for each low and each high demander?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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