What are the profit maximizing prices for hardcover

Assignment Help Microeconomics
Reference no: EM13532898

Shooting Star Books is a small publishing company that specializes in science fiction books. Like most publishers, Shooting Star releases new books in hardcover form and later releases paperback versions of the books. The marginal cost of printing both types of books is $2 per book,
and Shooting Star maximizes profits by practicing intertemporal price discrimination. The annual demand for recently released (hardcover) books is Q1=400-10P1, where quantity demanded is measured in thousands of books and price is measured in dollars per book. The annual demand for the paperback version of previously released books is Q2=800-40P2 a. What are the marginal revenue curves associated with the two demand curves for books?
b. What are the profit maximizing prices for hardcover and paperback books? What are the  quantities of books demanded at these prices for hardcover and paperback books?
c. Suppose the market demand for paperback books shifts to How does this
change affect the profit maximizing price and quantity in the paperback book market?
d. Does this change affect the profit maximizing outcome in the hardcover book market?

Reference no: EM13532898

Questions Cloud

Reproduce the journal entries for only the transactions : Reproduce the journal entries for only the transactions that occurred on October 1,10, and 20, and provide explanations and prepare a trial balance at October 31, 2012.
Plant molecular biologists have recently discovered genes : Plant molecular biologists have recently discovered genes that are responsible for controlling cell division in tomatoes. Why would such a discovery be important to producers of other kinds of fruits and vegetables ?
Calculate the rockets initial upward acceleration : A 2.2×10^4kg rocket has a rocket motor that generates 3.1×10^5N of thrust. What is the rocket's initial upward acceleration
Define the weight percent of ascorbic acid : The titration required 20.34 mL of 0.0491 M thiosulfate solution. Calculate the weight percent of ascorbic acid in a tablet of Vitamin C.
What are the profit maximizing prices for hardcover : What are the profit maximizing prices for hardcover and paperback books? What are the  quantities of books demanded at these prices for hardcover and paperback books?
Brief description of the reaction conditions : In the cell, the conversion of citrate to isocitrate will definitely proceedspontaneously under the appropriate conditions. Provide a brief description of the reaction conditions that allow for this possibility.
Prepare a trial balance at august : Post the transactions to T accounts and prepare a trial balance at August 31, 2012.
State the partial pressure of carbon dioxide : A block of dry ice of dimensions 25 cm x 25 cm x 25 cm is left to sublime in a closed chamber of dimensions 4.00 m x 5.00 m x 3.00 m. The partial pressure of carbon dioxide in this chamber at 25 C will be
Explain how to reduce the activity of the catalytic enzyme : Explain the different mechanisms by which each of the inhibitors act to reduce the activity of the catalytic enzyme.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the impact on aw

Consider a $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a 10 % MARR applies. Using a spider plot, examine how sensitive the annual worth for the investment is to errors in estimating t..

  Your company bright paints is one of a dozen companies

your company bright paints is one of a dozen companies manufacturing a special reflective paint used for traffic signs.

  Define marketing strategy emphasizing mass media advertising

An order written by the exporter instructing the importer, or their agent, to pay a specified amount of money at a specified time is a:  Note Payable, Draft, Promissory Note, Check.

  Calculate the change in consumer surplus

Calculate the change in consumer’s surplus, change in producer’s surplus, tax revenue, and deadweight loss as a result of the policy change. Illustrate them on a graph.

  A firm in a purely competitive industry is currently

a firm in a purely competitive industry is currently producing 1000 units per day at a total cost of 450. if the firm

  Give an overview of the company business

Who are its main customers, suppliers, and competitors?

  Why a monopoly can potentially earn super-normal profit

Explain, using diagrams, why a monopoly can potentially earn super-normal profit in both the short run and the long run, while perfectly competitive firms can only earn normal profit in the long run.

  Theory of market failure

How government intervention in the form of a tax on producers can make the post-policy outcomes even worse than the pre-policy position and explain the underlying economic logic of this proposition.

  What occurs to money supply interest rates and economy if

what happens to the money supply interest rates and the economy if the federal reserve is a net seller of government

  What is the implied price elasticity of demand by foreigners

"When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries."

  What happens to the rental prices in the suburbs

A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..

  How do programs such as the nehemiah program

The loan office of the bank has just called Ms. Firth to mention another financing possibility-the graduated payment mortgage. Terms, interest rates, and fees are the same as a normal mortgage. However, by lowering the payments in the early years,..

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!

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