In 2018 pop star Drake was downloaded twice as often as Cardi B. She, in turn, was

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In 2018 pop star Drake was downloaded twice as often as Cardi B. She, in turn, was downloaded twice as often as Bruno Mars. Yet, downloads for these artists all sold for the same price in Apple’s iTunes store. Does this suggest that Apple is failing to maximize profits?  Make the reasonable assumption that the marginal cost of supplying a download is a constant $0.25. Then try to construct a graphical example in which very different demand curves produce the same price.

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Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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