Business, 05.05.2020 09:34 gabiii262

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:

Demand: P= 1000 -10Q
Total Revenue: TR= 1000Q- 10Q^2
Marginal Revenue: MR= 1000- 20Q
Marginal Cost: MC= 100+10Q

Scenario Price (Dollars) Quantity (DVDs)

Maximizes the company's profit:
Maximizes social welfare:

The deadweight loss from the monopoly is $ .

Suppose, in addition to the foregoing costs, the director of the film has to be paid. The company is considering four options:

I. A flat fee of 2,000 Ectenian dollars
II. 50 percent of the profits
III. 150 Ectenian dollars per unit sold
IV. 50 percent of the revenue

Answers: 2

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Based on market research, a film production company in Ectenia obtains the following information abo...

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