Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
Question
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Chapter 14, Problem 13QE

a)

To determine

The effect of blocking new carriers at airport on fares and the number of flights.

b)

To determine

An airlines spending’s to block new carriers.

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A movie production company is planning to make its new movie available online so that it can enjoy  monopoly power. Each time the movie is downloaded the production company has to pay 4 taka to the  internet service provider. Now it is deciding what price to charge for each download. The numbers below shows the demand schedule for the company, Price per download dollar  - 10, 8, 6, 4, 2, 0. Quantity of downloads demands 0, 1, 3, 6, 10, 15. a) Calculate the total revenue and marginal revenue per download.   b) To maximize profit what price should be charged and how many downloads would need to be sold?
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