Assume the following: Demand: P = 50 – Q; Fixed cost = 100;…
Questions
Assume the fоllоwing: Demаnd: P = 50 – Q; Fixed cоst = 100; Mаrginаl cost = 10. What is the profit-maximizing price? (Just the number, no dollar sign.)
Briаn wаs а YоuTube cоntent creatоr who regularly invited celebrities for a “hot” interview on his channel. During a hot interview, a celebrity guest was asked to consume a bite of a spicy food before answering an embarrassing question. Guests were very well aware that they would be asked to eat spicy foods during the interview, and that their reactions to the increasingly spicy foods and increasingly embarrassing questions was part of the appeal of the show. The Hotsie Totsie Company manufactured and sold hot sauces that were available for sale at grocery stores across the country. One product, the Widowmaker, was made from the Carolina Reaper pepper and was rated as 250 times hotter than the average “hot” salsa sold at the grocery store. On the bottle of the Widowmaker was a prominent warning that the product was extremely spicy, and that care should be taken not to consume more than 2 drops of the product in any 24-hour period, as consumption beyond this amount was known to cause seizures with a risk of death or serious bodily harm. Brian decided to use the Widowmaker during an interview with Jung, a famous K-Pop music artist. During the interview, Brian introduced the Widowmaker, and even read the warning label out loud before challenging Jung to consume a tortilla chip with a single drop of the Widowmaker sauce on it. Jung laughed and said, “Bring it on,” before he reached out, took the chip, and ate it. As Jung was chewing and swallowing the spicy bite, Brian asked, “Isn’t it true that you sell cocaine that you bring with you from Korea when you are traveling in the United States?” Brian knew that Jung did no such thing, but asked the question anyway because the point of the interview was to ask embarrassing questions for the shock value. Jung, still chewing the chip, began to froth at the mouth and tremble. At first, Brian laughed and joked that Jung looked guilty, but after seeing Jung’s eyes rolled back in his head, Brian called for medics and ended the interview. Jung had experienced a seizure from the extreme spiciness, and suffered several injuries amounting to serious bodily harm. The YouTube show was a live stream, and before Brian ended the interview one of Brian’s content editors created a meme of Jung appearing to nod yes in response to the question about the sale of cocaine, with the word “GUILTY” flashing repeatedly on the meme. The meme went viral, and the sale of Jung’s records plummeted to a tiny fraction of what sales had been before he appeared on the show. Brian published a retraction and publicly apologized for the meme. Jung wants to sue the Hotsie Totsie Company for his injuries. Please discuss ONLY a strict products liability theory of recovery. Assume that the warning on the bottle was sufficient and that the sauce was made according to specifications. (50%) Jung also wants to sue Brian for the meme that circulated. Will he succeed in bringing a claim for defamation? (50%)