(1.) Johnny Rockabilly has just finished recording his latest CD. His record companymarketing department determines that the demand for the CD is as follows:Number of CDsPrice$2410,0002220,0002030,0001840,000650,000360,000The company can produce the CD with no fixed cost and a variable cost of $12 perCD.a. Find total revenues and marginal revenues for each of the quantities.b. What quantity of CDs would maximize profit? What would the price be?

We have given demand schedule for Cd's

(1.) Johnny Rockabilly has just finished recording his latest CD. His record companys marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10,000 22 20,000 20 30,000 18 40,000- 6 50,000 3 60,000 CD. The company can produce the CD with no fixed cost and a variable cost of $12 per a. Find total revenues and marginal revenues for each of the quantities. SCDs Would maximize profit? What would the price be?

(1.) Johnny Rockabilly has just finished recording his latest CD. His record companys marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10,000 22 20,000 20 30,000 18 40,000- 6 50,000 3 60,000 CD. The company can produce the CD with no fixed cost and a variable cost of $12 per a. Find total revenues and marginal revenues for each of the quantities. SCDs Would maximize profit? What would the price be?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 6PA

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3. Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10 000 22 20 000 20 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to 10 000, 20 000, and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would be the price? What would be the profit? c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why?
6. Guy Rope and his backing group, the Tent Pegs, have just finished recording their latest music CD. Their record company's marketing department determines that the demand for the CD is as follows: Price (€) Number of CDs €24 10 000 22 20 000 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of €0.15 per CD. a. Find total revenue for quantity equal to 10 000, 20 000 and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would the price be? What would the profit be? c. If you were Guy Rope's agent, what recording fee would you advise Guy to demand from the record company? Why?
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