Softco Each business it serves has the demand for Softco’s product: P = 70 - Q....
Softco
Each business it serves has the demand for Softco’s product: P = 70
- Q. The marginal cost for each program is $10. Assume there are no
fixed costs.
is a software company that sells a patented computer program to businesses.
-
a) If Softco sells its program at a uniform price, what price would maximize profit? How many units would it sell to each business customer? What şs the level ofproducer surplus?
-
b) Find the optimal block tariffs if the company uses 3 different prices for 3 different blocks. What is the new producer surplus?
Homework Answers
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Softco
Each business it serves has the demand for Softco’s product: P = 70
- Q....
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