Solve clearly..

What is the optimal price for your app? Answer: Justification: What is your projected optimal profit? Answer: Justification: Your new entrepreneur friends told you that they increased their customer base by ten fold after advertising on Facebook. You realize you can do the same. You can put an ad on Facebook and increase your reach to approximately a million customers. Assume that Facebook charges a fixed price, not per view or per click. What is largest amount that you are willing to pay to advertise your product on Facebook? Answer: Justification:1. Demand, Monopolists, and Advertising You have built a new mobile app. Then you have used what remains from your savings to hire a cheap survey company to identify a representative customer base of size 5000 and to nd their reservations prices. You found that: 500 customers less than $1 500 customers between $1 and $2 500 customers between $2 and $3 500 customers between $3 and $4 500 customers between $4 and $5 2500 customers more than $5 You have already produced the app and spent all your savings. At this point, it takes appmxi- mately $2 to maintain each customer. Without any marketing, you can reach a hundred thousand customers. You want to maximize your prots. What is your estimate of the \"smooth\" D(p)? Answer: J ustication: . Is there a choke price? If so, what is it