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(Solved): Mike has just made a documentary movie about his football team. He is thinking about making the movi ...
Mike has just made a documentary movie about his football team. He is thinking about making the movie available for download on the internet, and he can act as a single-price monopolist if he chooses to. Each time the movie is downloaded, his internet service provider charges him a fee of £4. Mike is arguing about which price to charge customers per download. The table below shows the demand schedule for his film: Price of Download Quantity of downloads demanded £10 0 £8 1 £6 3 £4 6 £2 10 £0 15 a) Calculate the total revenue and the marginal revenue per download. b) Suppose that Mike wants as many people as possible to download the movie. Which price would he choose? How many