Chp 15 Need answers to all please! 12. Based on the market research, a recording

Question

Chp 15 Need answers to all please!

12. Based on the market research, a recording company obtains the following information about the demand and production costs of its new CD:

Price= 1,000-10Q
Total Revenue=1,000Q-10Q squared
Marginal revenue= 1,000-20Q
Marginal Cost= 100+10Q



D, Suppose, in addition to the costs above, the musician on the album has to be paid. The company is considering four options:
1. a flat feee of 2,000 cents
2. 50 percent of the profits
3.150 cents oer unit sold
4. 50 percent of the revenue
- For each option, calculate the profit maximizing price and quantity. Which if any, of theses compensation schemes would alter the deadweight loss from monopoly?Explain

Explanation / Answer

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