What is the firm profit-maximizing price

Assignment Help Microeconomics

Reference no: EM132133701

Question: Consider the market for a software application. There are 20 consumers who value technical support, which they can only receive if they purchase the application. There are 10 consumers who do not value technical support. Consumers who value technical support obtain a payoff of 2n - p if they purchase the software and n if they pirate the software, where n is the total number of users, and p is price. Consumers who do not value technical support receive payoff of n - p if they purchase the software, and n is they pirate the software.Suppose the software is costless to both produce and to protect from piracy If the software is not protected, so that piracy is an option for consumers, what is the firm's (single) profit-maximizing price?

If the software is not protected, so that piracy is an option for consumers, what is the firm's (single) profit-maximizing price?

Reference no: EM132133701

Questions Cloud

Determine the pigou tax that achieves the social optimum : Consider an industry with demand q = 120 - 3p and supply q = 2p - 10. Suppose that production is polluting the environment and that the marginal social cost.

Print high quality marketing materials brochures : BMO Inc sells commercial/industrial printers to businesses including creative marketing agencies that need to print high quality marketing materials brochures,

Why might education exhibit positive externalities : Why might education exhibit positive externalities? Describe a government policy to internalize the positive externality of education.

Secure preferred pricing on several products : The XYZ Co. has negotiated with their vendor and has been able to secure preferred pricing on several products they purchase from them, including this product.

What is the firm profit-maximizing price : Consider the market for a software application. There are 20 consumers who value technical support, which they can only receive if they purchase.

Discuss about the horizontal marginal cost schedule : Consider a monopoly with a horizontal marginal cost schedule. If a tax t is imposed on the monopolist, show that: Price increases by exactly half the tax.

Concept discussed reinforce need for effective communication : How might the outcome be different. How do the concepts discussed reinforce the need for effective communication?

Decisions must be made regarding air carrier fleet planning : What short-term and long-term management decisions must be made regarding air carrier fleet planning?

What is the expected net present value : Consider a project that requires an upfront payment of $500. Suppose there is a 70% percent chance that the project is moderately successful and generates.

User Account

All Pages