(ou are the CEO of a brand-new dating app (BNDA). The number of users (i.e. total quantity demanded) for BNDA is: n = 1200 – p + ynº where y e (0,1), nº is the expected network size, p is the price. ) Interpret the parameter y. What strategies can you use for a company like BNDA to increase the value of y? (* >) Assume per user is 0. What is the profit maximising price? 0.4 and the users accurately anticipate nº so that n = nº, and the marginal cost :)Suppose BnDA have an investment opportunity to acquire a start-up that can increase the parameter y from 0.4 to 0.9. What is the maximum amount BNDA should be willing to pay for this acquisition? (:

(ou are the CEO of a brand-new dating app (BNDA). The number of users (i.e. total quantity demanded) for BNDA is: n = 1200 – p + ynº where y e (0,1), nº is the expected network size, p is the price. ) Interpret the parameter y. What strategies can you use for a company like BNDA to increase the value of y? (* >) Assume per user is 0. What is the profit maximising price? 0.4 and the users accurately anticipate nº so that n = nº, and the marginal cost :)Suppose BnDA have an investment opportunity to acquire a start-up that can increase the parameter y from 0.4 to 0.9. What is the maximum amount BNDA should be willing to pay for this acquisition? (:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.8P

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