Author Question: Music Pricing Downloads of digital entertainment goods, e.g., movies, songs, books, have marginal ... (Read 461 times)

khang

  • Hero Member
  • *****
  • Posts: 569
Music Pricing Downloads of digital entertainment goods, e.g., movies, songs, books, have marginal costs that are essentially zero. If so, what elasticity are the sellers adjusting prices to achieve?

Question 2

In the strategic view of bargaining the outcome depends on
 a. Who makes the first move
 b. Who can commit to a position
 c. Whether or not the other party can make a countermove
  d. All of the above



dantucker

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

(P-MC)/P = 1/e, but if MC = 0, we have:
(P-0)/P = 1/e
P/P = 1/e
1 = 1/e
e = -1

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

For a complete list of videos, visit our video library