User Account

All Pages

Publisher set with this profit-sharing agreement

Assignment Help Macroeconomics
Reference no: EM131239439

The demand function for a very famous introductory economics textbook is P = 100 - 0.005Q. The publisher must pay $20 per book in printing and distribution costs and, in addition, she must pay the author a $20 royalty for each book sold.

A consultant says that the publisher and the author have the wrong agreement. He says the author and the publisher should tear up their original agreement, and instead enter a profit-sharing agreement. He recommends that the author gets 40% of the profit and the publisher gets 60%. (i) What price should the publisher set with this profit-sharing agreement, (ii) will the author and publisher prefer the profit-sharing agreement to their original agreement? (iii) which agreement will the students who buy the textbook prefer?

Reference no: EM131239439

Questions Cloud

Calculate the price of a 3 month american put option : Calculate the price of a 3-month American put option on a non-dividend-paying stock when the stock price is $60, the strike price is $60, the risk-free interest rate is 10% per annum, and the volatility is 45% per annum.
What are the issues surrounding privacy : What opportunities and problems do you see in using social media to facilitate the staffing process? What are the issues surrounding privacy? Legal implications?
Calculate the implied probability distribution : Calculate the implied probability distribution. - Compare it with the implied distribution where all the implied volatilities are 11.5%.
Probably happens to the demand for natural gas : When the price of petroleum goes up, what probably happens to the demand for natural gas?
Publisher set with this profit-sharing agreement : (i) What price should the publisher set with this profit-sharing agreement, (ii) will the author and publisher prefer the profit-sharing agreement to their original agreement? (iii) which agreement will the students who buy the textbook prefer?
Is ethical for typical employer check personal information : Is it ethical for a typical employer to check personal information on social networking sites of its employees and job applicants, and make employment decisions based on this information?
Liquidity preference framework : Using the liquidity preference framework, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions).  A graph is required for this part of the question.
Different prices for a similar good in tow markets : If a firm faces different prices for a similar good in tow markets, how will the firm decide what price to charge if the firm cannot price discriminate?
How circumstance changes if the motor inertia is negligible : In addition to synthesizing bond graph and deriving the differential equations, use the bond graph to show that one inertia is dependent on the other. Furthermore, show how the circumstance changes if the motor inertia is assumed to be negligible.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd