Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic
b. profits are maximized where price elasticity of demand is -1.0
c. songwriter royalties are a percentage of sales revenue
d. profits and total revenue are maximized at different quantities
e. profits are maximized at the same prices as sales revenue
Question 2
A parent company rewarding managers on profit centers can simply
a. Subtract division costs from the division revenue and reward the manager on the difference
b. Add the division costs to the division revenue and reward the manager on the sum
c. Reward the manager on the revenue of the division
d. Reward the manager on the costs of the division
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