Question
PhotoJournal sells royalty-free stock photographs on the Web. Home users are generally content with low-quality images for family newsletters. Professional users generally require high-resolution images
PhotoJournal sells royalty-free stock photographs on the Web. Home users are generally content with low-quality images for family newsletters. Professional users generally require high-resolution images suitable for commercial printing (though can make low-resolution images work with extra effort and editing). The unit cost of producing and delivering either version is zero. PhotoJournal estimates that:
Professional users value low-resolution images at $30 each and high-resolution images at $50.
Home users value low-resolution images at $20 each and high-resolution images at $25.
If Photo Journal expects about 1000 professional users and 1000 home users to peruse its site daily, what is the maximum daily profit that they are likely to achieve?
A. $40,000
B. $50,000
C. $60,000
D. $70,000
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