Flicker has estimated that the demand equation
Macroeconomics
Flicker has estimated that the demand equation of a typical subscriber is P = 12 ? 2Q, where Q is the number of monthly on-line video rentals. The marginal cost of each on-line video rentals is $2 per month. How much should Flicker charge per on-line video rental?
| $1,$2,$3,$4,$5 |
Flicker has estimated that the demand equation of a typical subscriber is P = 12 ? 2Q, where Q is the number of monthly on-line video rentals. The marginal cost of each on-line video rentals is $2 per month. Suppose that Flicker practices two-part pricing. How much profit will Flicker earn per member?
| $25,$50,$75,$100,$150 |
