Tag Archives: Cabral

What are the optimal prices for each version of the software-Is the firm better off by selling the intermediate version instead of the scaled-down version?

Problem 1. 6.8 from Cabral: Sal’s satellite company broadcasts TV to subscribers in LA and NY. Demand functions are QNY=50-(1/3)PNY QLA=80-(2/3)PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by TC=1000+30Q, where Q= QNY + QLA. […]