Question
Suppose that the inverse yearly demand for the typical eBook is P = 15 - 3Q, where Q refers to the quantity of the book,
Suppose that the inverse yearly demand for the typical eBook is P = 15 - 3Q, where Q refers to the quantity of the book, in thousands of units sold, and P is price. Since the cost of a customer downloading one more copy of an eBook is basically zero, assume that the marginal cost per book for publishers is $0 (zero). Also assume that publishers are not able to price discriminate. Given this information, what are the profit-maximizing and revenue-maximizing prices for publishers?
Group of answer choices
Profit maximizing price is $7.50, revenue maximizing price is $2.50
Profit maximizing price is $7.50, revenue maximizing price is $7.50
Profit maximizing price is $7.50, revenue maximizing price is $15
Profit maximizing price is $12.50, revenue maximizing price is $15
Profit maximizing price is $12.50, revenue maximizing price is $2.50
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