16.08 B AudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year for this artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups of customers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the 80,000 casual music fans who will pay up to $40 a year to listen to this artist's music. If AudioPlus can price discriminate, what is its maximum profit? Type your numeric answer and submit

16.08 B AudioPlus buys the rights to be the only streaming platform to play music from a popular artist. AudioPlus pays $400,000 a year for this artist and the marginal cost of providing this artist's music is zero. AudioPlus' economist realizes they have two groups of customers: the 6,000 hard-core fans of this artist who will pay up to $400 a year to be able to listen to this artist's music; and the 80,000 casual music fans who will pay up to $40 a year to listen to this artist's music. If AudioPlus can price discriminate, what is its maximum profit? Type your numeric answer and submit

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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