1. What is the highest tuition at which you would have still chosen UCSB? Tuition and fees at UCSB is about $7600 for residents and $25000 for nonresidents. 1.$40,000 or more 2.$30,000 3.$25,000 4.$20,000 5.$15,000 6.$10,000 7.$8,000 8.$5,000 9.Less than $5,000

2. Willingness to pay for an IPOD

3. Which price maximizes revenue? 1. $450 2. $350 3. $300 4. $250 5. $200 6.$150

4. Total Revenue Maximization

5. Price and Revenue

6. Demand Curve for Ipods

7. Elasticity along demand curve

9. Total Revenue and quantity

10. If Marginal cost is $50, which price maximizes profits? 1.$350 2.$300 3.$250 4.$200 5.$150

11. Profit with $50 Marginal Cost per unit

12. Profit with $100 Marginal Cost per unit

13. If wholesale price is 80% of retail price and marginal cost is $50, what price maximizes Apple’s profits? 1.$350 2.$300 3.$250 4.$200 5.$150

14. Profit with $50 Marginal Cost: Wholesale price 80% of retail

15. And on to our lecture…