Once the copyright runs out on a book or music, it can legally be placed on the Internet for anyone to download. In 1998 the U.S. Congress extended the copyright law to 95 years after the original publication. But the copyright holds for only 50 years in Australia and 70 years in the European Union. Thus, an Australian website could post Gone With the Wind, a 1936 novel, or Elvis Presley’s 1954 single “ That’s All Right,” while a U.S. site could not. Obviously, this legal nicety won’t stop U.S. fans from down-loading from Australian or European sites. Discuss how limiting the length of a copyright would affect the pricing used by the publisher of a novel.
Answer to relevant QuestionsIn the “Botox” Mini- Case, consumer surplus, triangle A, equals the deadweight loss, triangle C. Show that this equality is a result of the linear demand and constant marginal cost assumptions.Why are newsstand prices higher than subscription prices for an issue of a magazine?In the examples in Table 10.1, if the movie theater does not price discriminate, it charges either the highest price the college students are willing to pay or the one that the senior citizens are willing to pay. Why ...A firm is a natural monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). The firm can perfectly price discriminate. a. In a graph, show how much the ...How would the analysis in Q& A 10.2 change if MC = 7?
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