BroSoBasic Productions has produced a TV series, Fleet & Frenetic. Its cast appe
ID: 1140807 • Letter: B
Question
BroSoBasic Productions has produced a TV series, Fleet & Frenetic. Its cast appeals to every major demographic group and includes monster trucks. Dialog is limited to grunts, groans and the occasional 'yo bro'. It is widely anticipated to be the most watched series in America next year. One critic described it as the "celluloid equivalent of Taco Bell's 7 layer burrito deep fried in duck fat." BroSoBasic is negotiating with Amazon to distribute the series. Amazon would be the only firm to distribute the series. Amazon has a constant margin for BroSoBasic to provide Amazon with the series (as all filming and editing is completed). The inverse demand curve for BroSoBasic's series is p(g) Amazon is offering BroSoBasic a choice between three potential contracts. The first will pay BroSoBasic a fixed fee F for the right to distribute the show and Amazon will set the price to its customers. The second will pay BroSoBasic a fee of w per purchase of the series by an Amazon customer but Amazon will set the price to its customers. The third is a royalty fee in which BroSoBasic earns a percentage of the revenue that Amazon generates through selling the series to its viewers. In this case also, Amazon will set the price to its customers. Suppose 0Explanation / Answer
an indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. That is, the consumer has no preference for one combination or bundle of goods over a different combination on the same curve. One can also refer to each point on the indifference curve as rendering the same level of utility (satisfaction) for the consumer. In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer. Utility is then a device to represent preferences rather than something from which preferences come.[1] The main use of indifference curves is in the representation of potentially observable demand patterns for individual consumers over commodity bundles.[2]
There are infinitely many indifference curves: one passes through each combination. A collection of (selected) indifference curves, illustrated graphically, is referred to as an indifference map.
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