Suppose That a Professional Photographer Takes a Prize-Winning Digital Photo

question 239

Multiple Choice

Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10. She can also sell the digital file for $20. There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file itself or any prints made from it. What should she do in order to maximize her profits?

• A)earn $5,000 by selling only the color prints
• B)earn $40,000 by selling only the digital files
• C)earn $45,000 by selling both the color prints and the digital files at their respective prices
• D)We do not have enough information with which to answer this question.

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Definitions:

Pessimistic Explanatory

A tendency to explain negative events as being widespread, permanent, and uncontrollable.

Martin Seligman

A psychologist known for his work on positive psychology, learned helplessness, and for promoting concepts such as PERMA to characterize well-being.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less competent or in a worse situation, which can boost self-esteem.

Self-effacing Bias

The tendency to attribute successes to external factors and failures to internal factors, often observed in some cultures.