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After Rochelle does the research for her new app, she learns that she will have 100 power users who would be willing to pay $5
After Rochelle does the research for her new app, she learns that she will have 100 power users who would be willing to pay $5 and 400 casual users who would only be willing to pay $2. The marginal cost to provide the app to any one user is constant at $1, and there are no fixed costs. Suppose Rochelle cannot use price discrimination and charges a price of $2 to all consumers. Her profit would be _____. $300 $400 $500 $800
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