Q1. DVDs also DVD players are no longer niche products; 31 million players have been sold in the United States. Sony sells both DVD players also DVDs. Illustrate what should be Sony's approach to pricing? Illustrate what difference will it make to Sony pricing if clients have now become dissimilar?
Q2. Assume to a firm's only variable input is labor. When 50 workers are utilized the average product of labor is 50 also the marginal cost of the 50th worker is 75. The wage rate is $80 also the total cost of the fixed input is $500.