6.1 You are a manager of a company that produces advanced televisions sold through competitive retailers. If your retailers demonstrate the televisions, demand increases, so that consumers are willing to pay $10 more per television.

a. The marginal cost to the retailers of demonstrating the television is $15. To maximize your profit, do you want the retailers to demonstrate your television?

Why or why not?

b. Now suppose that the marginal cost of demonstrating the television is $5. Do you want the retailers to demonstrate your television? Why or why not?