Two television networks (X and Y) are considering paying for the right to show movie A and/or movie B. Network X would be willing to pay $18,000 for movie A and $22,000 for movie B, while Network Y would be willing to pay $17,000 for movie A and $25,000 for movie B. Should the movie distributor sell the movies separately or as a pure bundle, and what will the profit be for the movie distributor? Select one: a. Sell as a bundle, profit will be $80,000 b. Sell separately, profit will be $78,000 c. Sell as a bundle, profit will be $84,000 d. Sell separately, profit will be $94,000
Two television networks (X and Y) are considering paying for the right to show movie A and/or movie B. Network X would be willing to pay $18,000 for movie A and $22,000 for movie B, while Network Y would be willing to pay $17,000 for movie A and $25,000 for movie B. Should the movie distributor sell the movies separately or as a pure bundle, and what will the profit be for the movie distributor? Select one: a. Sell as a bundle, profit will be $80,000 b. Sell separately, profit will be $78,000 c. Sell as a bundle, profit will be $84,000 d. Sell separately, profit will be $94,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two television networks (X and Y) are considering paying for the right to show movie A and/or movie B. Network X would be willing to pay $18,000 for movie A and $22,000 for movie B, while Network Y would be willing to pay $17,000 for movie A and $25,000 for movie B. Should the movie distributor sell the movies separately or as a pure bundle, and what will the profit be for the movie distributor?
Select one:
a.
Sell as a bundle, profit will be $80,000
b.
Sell separately, profit will be $78,000
c.
Sell as a bundle, profit will be $84,000
d.
Sell separately, profit will be $94,000
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