ЕОC 16.07AudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year forthis artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups ofcustomers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the80,000 casual music fans who will pay up to $40 a year to listen to this artist's music.If AudioPlus can NOT price discriminate, what is its maximum profit? At what price do they maximize profit?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.Profit $3.0 million; Price = $40a.b Profit = $3.4 million; Price = $40Profit = $2.0 million; Price = $400Profit = $2.4 million; Price = $400 16.08 BAudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year forthis artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups ofcustomers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the80,000 casual music fans who will pay up to $40 a year to listen to this artist's music.If AudioPlus can price discriminate, what is its maximum profit?Type your numeric answer and submit

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AudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year fo this artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups of customers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the 80,000 casual music fans who will pay up to $40 a year to listen to this artist's music. If AudioPlus can NOT price discriminate, what is its maximum profit? At what price do they maximize profit?

AudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year fo this artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups of customers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the 80,000 casual music fans who will pay up to $40 a year to listen to this artist's music. If AudioPlus can NOT price discriminate, what is its maximum profit? At what price do they maximize profit?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 8PA

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