Quote:
Originally posted by atrlster
69 cents still seems high. There's like an economic term for it, I forgot what its called exactly, but theres a term for a price where consumers will feel is reasonable and be willing to part with their money easily, and 69 cents still seems too high imo
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In economics,
profit maximization is the short run or long run process by which a firm determines the price and output level that returns the greatest profit.
Example:
at $0.50 per MP3, you would get 10 million downloads ($5 mil revenue)
at $0.99 per MP3, you would get 5 milion downloads ($4.95 mil revenue)
you're better off with pricing your MP3 at $0.50
(this won't happen even $0.50 would result in the greatest profit because there is CD to consider. If songs are priced at $0.50, CD would be way overpriced at $10.)
Greed wins again 
(That's iTunes though, this website like our musical amazon kinda is cheaper)