3. Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about their bas-...

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3. Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about their bas- ketball 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. The Baxter brothers are arguing about which price to charge customers per down- load. The accompanying table shows the demand schedule for their film. Quantity of downloads demanded Price of download $10 6. 6. 10 15 a. Calculate the total revenue and the marginal revenue per download. b. Bob is proud of the film and wants as many people as possible to download it. Which price would he choose? How many downloads would be sold? c. Bill wants as much total revenuc as possible. Which price would he choose? How many downloads would be sold? d. Ben wants to maximize profit. Which price would he choose? How many down- loads would be sold? e. Brad wants to charge the efficient price. Which price would he choose? How many downloads would be sold? 3. Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about their bas- ketball 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. The Baxter brothers are arguing about which price to charge customers per down- load. The accompanying table shows the demand schedule for their film. Quantity of downloads demanded Price of download $10 6. 6. 10 15 a. Calculate the total revenue and the marginal revenue per download. b. Bob is proud of the film and wants as many people as possible to download it. Which price would he choose? How many downloads would be sold? c. Bill wants as much total revenuc as possible. Which price would he choose? How many downloads would be sold? d. Ben wants to maximize profit. Which price would he choose? How many down- loads would be sold? e. Brad wants to charge the efficient price. Which price would he choose? How many downloads would be sold?

Answer rating: 100% (QA)

a TR P Q MR i TR i TR i1 Q i Q i1 Price Quantity TR MR 10 0 0 8 1 8 8 6 ... View the full answer