Question: The New York Times a profit maximizing newspaper faces a downward sloping

The New York Times, a profit-maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages (for example, an ad saying “Read Maureen Dowd in the Sunday Times”), is the opportunity cost of a given- size ad simply the price it charges its outside advertisers? Explain.

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  • CreatedDecember 12, 2014
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