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Please someone help me out with this question, I can't remember how to correctly answer, TIA! Question 2 (5 points) A seller of digital goods
Please someone help me out with this question, I can't remember how to correctly answer, TIA!
Question 2 (5 points) A seller of digital goods has two potential customers. Let's call them A and B. The seller has two digital movies for sale. Let's call them C and D. A is willing to pay $5 for C and $3 for D. B is willing to pay $3 for C and $5 for D. Assume that variable costs are zero, and ignore fixed costs. (Like we did in class.) The seller is a monopolist, and a capitalist who wishes to earn as much revenue as possible from these two potential customers. (a) If the seller prices each movie at $3, how much revenue would the seller earn? (b) If the seller prices each movie at $5, how much revenue would the seller earn? (c) If the seller bundles both movies together, what should the seller price the bundle of two movies at? (d) Which option earns the seller the highest level of revenueStep by Step Solution
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