As the COO of a company in this industry, you must make decisions on how much music to produce/distribute/release. Currently, songs are selling for $0.99 per song with a Total Cost of production estimated at 3000+0.001Q+0.000025Q² or each additional song (MC)=0.001+0.00005Q. How many songs should the company distribute during this period? Will the company make an economic profit? If so, how much? If not, should they continue to operate? The CEO has ask you to predict what you think will happen to the level of competition in the future.

After some time, the price per song drops to $0.25; however, the costs stayed the same. How do your responses and recommendations to the previous questions change?