Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Suppose all iPod owners consider only two options for downloading music to their MP3 players: purchase songs from iTunes or copy songs from friends' CDs. With these two options, suppose the weekly inverse market demand for the Rolling Stones' song "Satisfaction" is p = 1.98- 0.00198Q. The marginal cost to Apple Inc. of downloading a song is zero. a. What is Apple's optimal price of "Satisfaction"? How many downloads of "Satisfaction" does Apple sell each week? b. Now suppose that Apple sells a version of the iPod equipped with software in which songs played on the iPod must be downloaded from iTunes. For this iPod, the inverse market demand for "Satisfaction" is p = 2.58- 0.0075Q. What is Apple's optimal price of downloads of "Satisfaction" for this new player? How many downloads of "Satisfaction" does Apple sell each week?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9685110

Have any Question?


Related Questions in Microeconomics

Question after collapse of the brettoh woods system the

Question: After collapse of the Brettoh Woods system, the FLOATING EXCHAGE RATE ERA(floating among major economies or economic blocs) has been in palce. Using a AA-DD diagram . Explain the type of disturbance that would ...

Question how does the existence of money reduce the costs

Question: How does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter? English is becoming the usual language for international transactions, even if the langua ...

Question on july 5 1884 dudley stephens and brooks - all

Question: On July 5, 1884, Dudley, Stephens, and Brooks - "all able-bodied English seamen" - and a teenage English boy were cast adrift in a lifeboat following a storm at sea. They had no water with them in the boat, and ...

Question a monte carlo analysis question an online apparel

Question: A Monte Carlo Analysis question: An online apparel retailer will sell winter coats this season. The retailer purchases the coats from a supplier at a cost of $175 and will sell them for $250. Demand has been fo ...

Question professor xavier is creating a budget for his

Question: Professor Xavier is creating a budget for his recently awarded 9-year research grant. His research requires machinery that has an initial cost of $49993. He will need to pay for maintenance on the machinery beg ...

Question older business cycle theories used to focus on

Question: Older business cycle theories used to focus on what was called the ‘‘interaction of the multiplier and the accelerator'' to produce endogenous business cycles; the accelerator said that investment was proportio ...

Question what is a trade war what are the consequences of a

Question: What is a trade war? What are the consequences of a trade war? What is the validity of the most frequently presented arguments for protectionism? What are the economic effects of tariffs and quotas? The respons ...

Question how might collective decision making play a role

Question: How might collective decision making play a role in the decision to buy a cell phone for a young child? Provide a possible scenario for this decision including the five decision making roles in your example. Pr ...

Question we have discovered that the welfare system

Question: We have discovered that the welfare system discourages recipients from working because the more income they earn, the less welfare benefits they receive. How does the earned income tax credit attempt to loosen ...

Question also during the 1990s the ratio of capital

Question: Also during the 1990s, the ratio of capital spending to GDP rose, while the personal saving rate declined almost to zero. The profit ratio did not rise very much; hence almost the entire increase in saving came ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved