Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Consulting, LLC currently enjoys a patent on software that estimates economic damages for clients involved in personal injury lawsuits. Demand for my software is Q

Consulting, LLC currently enjoys a patent on software that estimates economic damages for clients involved in personal injury lawsuits. Demand for my software is

QD = 360 - 5P. Creating the software cost me about $1,475 in development and coding. I can produce a copy of the software for $8 per unit (constant cost).

  1. How many copies of the software should I attempt to sell? At what price should I sell it? How much profit would I make?
  2. My patent expires in a year, and I know other economic consultants will produce competing software. What quantity and price will result once competing software emerges? How much consumer surplus will my clients (lawyers) gain once the competitors enter? (For measuring consumer surplus, recall that area of a triangle = * base * height.)
  3. How much deadweight loss is created by my patent and monopoly in this software?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these Economics questions