(d) Disregarding (c), suppose instead that the newspaper company now offers a revenue sharing contract to the newsboy. The newsboy pays 10 cents per copy up front (which is much lower than original purchasing cost 50 cents). However, for each copy of the newspaper sold to the end?consumers, the newsboy needs to give 50 cents (of that $1) to the newspaper company. What are the per unit underage costs (cu) and overage costs (co) for the newsboy? How many copies should the newsboy buy from the newspaper company every day? What is the newsboy?s expected pro?t? What is the newspaper company?s expected pro?t?
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Oct 14, 2020EXPERT
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