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Some media companies (especially in music and movie industries) run ads claiming that downloading or copying media is the same thing as stealing a DVD from a store. Let's see if this is the case.

a. Is a DVD a nonrival good? Why or why not?

b. Suppose someone stole a DVD from a retail outlet. Regardless of how that person values the DVD, does the movie company lose any revenue as a result of the theft? Why or why not?

c. Suppose someone illegally downloaded a movie instead of purchasing it. Also suppose that person placed a high value on the movie (he or she valued it more than the price required to purchase it legally). Does the movie company lose any revenue as a result of the theft? Why or why not?

d. Suppose someone illegally downloaded a movie instead of purchasing it. Also suppose that person placed a low value on the movie (he or she valued it less than the price required to purchase it legally). Does the movie company lose any revenue as a result of the theft? Why or why not?

e. How is illegally downloading media like retail theft and how is it not?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92659306

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