3. Andy Dwyer’s band has a new album out. The demand for their music is characterized by the following demand function:
Posted: Sun Jul 03, 2022 6:50 am
3. Andy Dwyer’s band has a new album out. The demand for theirmusic is characterized by the following demand function: 5 − p,where p denotes the price of their album. Each CD costs $3 tomake.
a. Please derive the marginal revenue curve? [3 points]
b. How much should Andy Dwyer charge for the CD and how many CDswould he sell? [5 points]
c. What is the social optimum number of CDs? [3 points]
d. Please draw a graph to indicate what you found in Parts a toc. [4 points]
a. Please derive the marginal revenue curve? [3 points]
b. How much should Andy Dwyer charge for the CD and how many CDswould he sell? [5 points]
c. What is the social optimum number of CDs? [3 points]
d. Please draw a graph to indicate what you found in Parts a toc. [4 points]