You have been hired by pickle.nyc, a new platform that specializes in matching NYC-area pickleball players with other similarly skilled players nearby. Due to the relatively niche nature of the market, it turns out that you have no other competitors in the region.

pickle.nyc has determined that demand for subscriptions to the platform is given byQ = 100 4P. Each additional subscription costs the site $5 to provide.

(a)What is pickle.nyc's marginal revenue from selling itsQth unit?

(b)How many subscriptions should pickle.nyc sell in order to maximize its profits? And what price should it charge?

One day, a brilliant intern realizes that the firm's database of subscribers is a potential goldmine: the site could further monetize its propriety technology by selling subscriber data to a dating platform. It turns out that the highest bidder was offering $30 per subscriber (a surprisingly low number given how much value pickleball players bring to the market).

(c)Now that it can monetize subscriber data, what is pickle.nyc's marginal revenue from selling itsQth unit? (Hint: account for all the revenues generated by each additional subscription.)

(d) Now that it can monetize subscriber data, what is pickle.nyc's optimal subscription price? How many subscriptions does the platform sell now?

As word starts to get around about how lucrative pickle.nyc's business is, a new copycat platform appears. This new platform has identical costs to pickle.nyc (it turns out that everything is being run using open source software on the Amazon cloud) and has signed a similar contract with the dating platform.

(e)Briefly explain whether you think this new platform will be successful. What impact do you think its entry will have on pickle.nyc's price and number of subscriptions, and why?