Business, 10.03.2020 20:29 saifulcrc468
Mega Media Cable TV is able to purchase an exclusive right to sell a premium sports channel in its market area. Let's assume that Mega Media pays $100,000 a year for the exclusive marketing rights to the sports channel. Since Mega Media has already installed cable to all of the homes in its market area, the marginal cost of delivering the sports channel to subscribers is zero. The manager of Mega Media needs to know what price to charge for the sports channel service to maximize her profit. Before setting price, she hires an economist to estimate demand for the sports channel. The economist discovers that there are two types of subscribers who value premium sporting channels. First are the 3,000 die-hard sports fans who will pay as much as $150 a year for the new channel. Second, the premium sports channel will appeal to 20,000 occasional sports viewers who will pay as much as $25 a year for a subscription to it.
a. How much profit will Mega Media Cable TV earn if it sets the price at $25
b. How much profit will Mega Media Cable TV earn if it sets the price at $150
c. If Mega Media Cable TV is unable to price discriminate, what price will it choose to maximize its profit, and what is the amount of the profit
d. If Mega Media Cable TV is able to price discriminate, what would be the maximum amount of profit it could generate
Answers: 1
Business, 22.06.2019 13:40, dathanboyd
Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?
Answers: 2
Mega Media Cable TV is able to purchase an exclusive right to sell a premium sports channel in its m...
Mathematics, 23.07.2020 04:01
Mathematics, 23.07.2020 04:01
Mathematics, 23.07.2020 04:01
Mathematics, 23.07.2020 04:01