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September 20, 2014

September 20, 2014

Posted by **Anonymous** on Thursday, September 16, 2010 at 8:09pm.

a. Suppose the station plans to give away the videos. How many DVDs should be order? From which supplier?

b. Suppose instead that the station seeks to maximize its profit from sales of the DVDs. What price should it charge? How many DVDs should it order from which supplier? (Hint: Solve two separate problems, one with supplier A and one with supplier B, and then compare profits. In each case, apply the MR=MC rule)

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