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Consider the market for a software application. There are 100 consumers who value technical support, which they can only receive if they purchase the application. There are 100 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 profit-maximizing price?
(a) Will a monopolist's total revenue be larger with second-degree price discrimination when the batches on which it charges a uniform price are larger or smaller Why (b) How does a two-part tariff differ from bundling
To begin your thread for a particular module, open the Key Terms document posted within each module, and select one of the key terms that interests you - Disccuison board on Managerial paradigms: ethnocentric, polycentric, and geocentric
Presume a country can produce a maximum of 5,000 jumbo airliners or 1,000 aircraft carriers. What is the opportunity cost of an aircraft carrier? What is the implied price of the carrier in trade?
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From the standpoint of a soft drink company, the question What goods and services should be produced is best represented by which of the following decisions:
There are three primary methods of inducing firms to emit the optimal level of pollution: standards, taxes and transferable permits. Compare and contrast these three techniques: describe each and explain its strengths and weaknesses.
most americans love participating in or at least watching sporting events. some feel that sports have more than just
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Consider the following aggregate expenditure model of the Canadian economy operating with givenwages and other factor prices, price level, interest rates, exchange rates, and expectations:
Alice rents bikes on Orcus Island. In her current operation with 20 bikes Alice can generate $16,000 in after tax net revenue each year. Alice is considering expanding her operation to renting 40 bikes which will generate $35,000 in annual revenue an..
The South End bookstore has an annual profit of $170,000. The owner is considering opening a second bookstore on the north side of the campus. He can lease an existing building for 5 years with option to continue the lease for a second 5-year period.
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