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Unformatted text preview: Name form number 1 Econ 1 More from Bozoworks Here is a slightly more difficult version of the Bozoworks problem. You might want to work through this one as well. 1. Bozoworks has exclusive rights to sell the game Space Morons. Bozoworks spent $2500 on creating the program. Its only remaining costs are $4 for each copy sold. If Bozoworks sells Q copies, its total costs are $2500 + 4 Q . Nobody will pay more than $80 for a copy of Space Morons. There are 34 demanders with buyer values of $80 for a copy of Space Morons. For every dollar that the price falls below $80, Space Morons picks up one more buyer. Thus there is 1 demander who has buyer value $79, one with buyer value $78, one with buyer value $77, and so on. Bozoworks marginal revenue from increasing its sales from 34 to 35 is: (a) $80 (b) $2,720 (c) $40 (d) $45 (e) $160 2. Which of the following formulas gives the highest price at which Bozoworks can sell Q copies of Space Morons, where 34 < Q < 114?...
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This note was uploaded on 10/12/2008 for the course ECON 1 taught by Professor Bergstrom during the Spring '07 term at UCSB.
- Spring '07