Asked by Jessica Alonso on May 31, 2024
Verified
(Consider This) Brinley is the hottest new pop singer,but his agent discovers that Internet sales of Brinley's music have been poor due to Internet piracy,but concerts are regularly sold out and merchandise (such as T-shirts) sells well.If Brinley wants to enhance profits,economists would most likely recommend that he:
A) charge more for downloads,concerts,and merchandise.
B) cut prices for downloads,concerts,and merchandise.
C) only give concerts.
D) keep prices of downloads low and raise prices for concerts and merchandise.
Internet Piracy
The unauthorized use, reproduction, or distribution of copyrighted material over the internet, including software, movies, music, and e-books.
Enhance Profits
Strategies or actions undertaken by a business to increase its earnings and maximize its financial performance.
- Comprehend the consequences of free-riding behavior and methods to reduce its impact.
Verified Answer
BS
Breanna SeawellMay 31, 2024
Final Answer :
D
Explanation :
Keeping prices of downloads low and raising prices for concerts and merchandise is the best option. This is because Brinley's concerts and merchandise are showing strong demand, which indicates that his fans are willing to pay more for these items. By keeping prices of downloads low, Brinley can discourage piracy and encourage fans to purchase legitimate copies of his music. This approach will allow Brinley to increase profits while still catering to the demands of his fans.
Learning Objectives
- Comprehend the consequences of free-riding behavior and methods to reduce its impact.