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The Network's demand for films is PN = 400,000 - 200Q. The Network pays NFL Films a price PF for each film and adds $100,000
The Network's demand for films is PN = 400,000 - 200Q. The Network pays NFL Films a price PF for each film and adds $100,000 for each film to get it ready to air. It also has FCN = $200,000. NFL Films has MCF = $260,000 and FCF = $100,000. Since it sells only to the NFL Network, its demand is the same as the Network's demand and so QN = QF = Q. How many films will the NFL network buy and licence to international neetworks
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