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A data scientist working at the Bank of England estimated that the actual demand for October 31 Brexit memorial coins is twice bigger than you
- A data scientist working at the Bank of England estimated that the actual demand for October 31 Brexit memorial coins is twice bigger than you estimated in (b) at any given price. Fortunately, this update comes before the Bank had a chance to melt any coins, and as such up to a million coins are readily available. How many coins would you advise to sell, and at what price?
- How would your answer to (d) change if the Bank has actually melted all but 10,000 coins, and minting new ones is impractical (and politically impossible!)?
- How would your answer to (a) change if melting each coin produces precious metals in non-negligible amounts?
Hint: How does this change the marginal cost of selling (rather than melting) a coin?
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