00:01
Okay, so we're going to answer from part a.
00:05
Now, the revenue function is given by 0 .1 times x minus 400k, where x is the number of viewers in millions.
00:17
Now we can solve for break -even viewership.
00:19
So we set r equals 0.
00:21
So for x and get 400k over 0 or 4 million viewers.
00:44
Now, we can compare it to the demand curves.
00:56
So for nfl, the demand curve is given by 8 minus 2 over 3 times x, we set it equal to 0 .1.
01:11
Then we can solve for x.
01:16
That will be 8 minus 0 .1 times 3 over 2.
01:32
11 .85 million viewers.
01:36
As for masterpiece, the demand is given.
01:42
By 16 minus 2x, set it equal to 0 .1.
01:48
So for x here, 16 minus 0 .1 over 2, which is equal to 7 .95 million viewers.
02:16
So given the break -even point of 4 million viewers and demand projections, the network would likely achieve more than 4 million viewers with both shows.
02:25
And comparing this to info infomercials which guarantee $500 ,000 with no cost, we can compare the revenues...