Consumers in Germany have the following demand curve for mon…
Consumers in Germany have the following demand curve for monthly subscriptions to Topsify’s streaming music services: P = 30 − Q, while consumers in Bulgaria have the demand curve P = 20 – Q. Assume that the product has zero marginal costs but positive fixed costs. Suppose that the provider, Topsify, can set a different price in each country. Find the profit-maximizing price for each country and the quantity sold. (5 points) Suppose the European Union passes a law against country-specific pricing. Now the service must set a single price to be charged in both Bulgaria and Germany. Find the revenue-maximizing price and quantity (5 points) PLEASE SHOW ALL WORK FOR FULL CREDIT AND USE THE TEXT BOX PROVIDED