Business, 27.06.2019 02:10 Jana1517

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=1,200−10q total revenue: tr=1,200q−10q^2 marginal revenue: mr=1,200−20q marginal cost: mc=300+10q
where q indicates the number of copies sold and p is the price in ectenian dollars. (a.) find the price and quantity that maximizes the company's profit. (b.) find the price and quantity that would maximize social welfare. (c.) find the dead weight loss. (d.) suppose, in addition to the costs above, 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; and (iv.) 50 percent of the revenue.

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

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