Compute total revenue and marginal revenue per album

Assignment Help Microeconomics

Reference no: EM13455946

Download Records decides to release an album by the group Mary and the Little Lamb. It produces the album with no fixed cost, but the cost of downloading the album to a CD and paying Mary her royalty is $6 per album. Download Records can act as a single-price monopolist. Its marketing division finds that the demand schedule for the album is as shown in the accompanying table:

Price of Album	Quantity of Albums Demanded	TR	MR
$22	0
$20	1000
$18	2000
$16	3000
$14	4000
$12	5000
$10	6000
$8	7000

a) Calculate the Total Revenue and Marginal Revenue per album.

b) The marginal cost of producing each album is constant at $6. To maximize profit what level of output should Download Records choose, and which price should it therefore charge? Explain your answer.

Reference no: EM13455946

Questions Cloud

Explain the strengths and weaknesses of the four major : what are the strengths and weaknesses of the four major appraisal methods currently in

Calculate impact of a 50 decrease in taxes from 125 to 75 d : c300 0.80y - 125 i 150 g 250 x 115 x 125.05y using the original data compute the impact of a 50 decrease in taxes

Explain the purpose of performance appraisals explain the : explain the purpose of performance appraisals? explain the strengths and weaknesses of the four major appraisal

Looking at the periodic table what other element do you : a carbon atom with a half- full outer shell of electrons- four in a shell that can hold eight- readily shares its

Compute total revenue and marginal revenue per album : download records decides to release an album by the group mary and the little lamb. it produces the album with no fixed

Examine the four steps of the control process and explain : organizational control process1. analyze the four steps of the control process and explain how each step contributes to

If christianity for most americans is the most familiar : directions if christianity for most americans is the most familiar form of religous expression ...if christianity

What are some potential methods of researching violence : a. questions for weekly discussions and conversations not part of the required discussion board assignmentthese

Discuss the concept of evangelism in christianity what is : discuss the concept of evangelism in christianity. what is its purpose? how has it harmed christianity? what is the

User Account

All Pages