A newspaper considers offering a new subscription service that wil send news articles to readers by emal Khas two types of potential users, students and executives. The yearty demand functions for articles x are as follows Pe= 100 Prices are ineasured in cents The newspaper has a zero marginal cost of sending articles via email It camot identiy which users are executives and which are students Suppose that it offers two packages a basc package (targeted to students) that alows up to 0 articles per year, and a premum package that allows up to 100 articles per year. What is the maximum fee that the newspaper can charge for the premium package ift offers the basic package at the highest fee that the students are wiling to pay? - x for executives Ps 80-x for students. )50 O (b) 16 O (c) 32 O (4) 34

A newspaper considers offering a new subscription service that wil send news articles to readers by emal Khas two types of potential users, students and executives. The yearty demand functions for articles x are as follows Pe= 100 Prices are ineasured in cents The newspaper has a zero marginal cost of sending articles via email It camot identiy which users are executives and which are students Suppose that it offers two packages a basc package (targeted to students) that alows up to 0 articles per year, and a premum package that allows up to 100 articles per year. What is the maximum fee that the newspaper can charge for the premium package ift offers the basic package at the highest fee that the students are wiling to pay? - x for executives Ps 80-x for students. )50 O (b) 16 O (c) 32 O (4) 34

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 13P

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