Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about their basketball team. They
Question:
Price of Quantity of downloads
download demanded
$10………………………….. 0
8…………………………….. 1
6…………………………….. 3
4…………………………….. 6
2…………………………….. 10
0…………………………….. 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 revenue 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 downloads would be sold?
e. Brad wants to charge the efficient price. Which price would he choose? How many downloads would be sold?
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