New York University ECON-SHU ECON-SHU COR1-GB.13 You have been hired by pickle.nyc, a new platform that specializes…

New York University ECON-SHU ECON-SHU COR1-GB.13 You have been hired by pickle.nyc, a new platform that specializes…

You have been hired by pickle.nyc, a new platform that specializes in matching NYC-area pickleball players with other similarly skilled players nearby. Due to the relatively niche nature of the market, it turns  out that you have no other competitors in the region.

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pickle.nyc has determined that demand for subscriptions to the platform is given by Q = 100 − 4P. Each  additional subscription costs the site $5 to provide.

(a) What is pickle.nyc’s marginal revenue from selling its Qth unit?

(b) How many subscriptions should pickle.nyc sell in order to maximize its profits? And  what price should it charge?

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