What quantity would a profit-maximizing publisher choose

Assignment Help Business Economics

Reference no: EM1315227

Q. A publisher faces the subsequent demand schedule for the next novel of one of its popular authors:

Price Quantity Demanded

$100 0
90 100,000
80 200,000
70 300,000
60 400,000
50 500,000
40 600,000
30 700,000
20 800,000
10 900,000
0 1,000,000

The author is paid $2 million to write the book also the marginal cost or publishing the book is a constant $10 per book.

a. Compute total revenue, total cost also profit at each quantity. Illustrate what quantity would a profit-maximizing publisher choose? Illustrate what price would it charge?

b. Compute marginal revenue. Elucidate how does marginal revenue compare to the price? Elucidate.

c. Graph the marginal-revenue, marginal-cost also demand curves. At Illustrate what quantity do the marginal-revenue also marginal-cost curves cross? Illustrate what does this signify?

d. In your graph shade in the deadweight loss. Elucidate in words Illustrate what this means.

e. If the author was paid $3 million instead of $2 million to write the book, Elucidate how would this affect the publisher's decision regarding the price to charge? Elucidate.

f. Assume the publisher was not profit-maximizing but was concerned with maximizing economic efficiency. Illustrate what price would it charge for the book? Elucidate how much profit would it make at this price?

Reference no: EM1315227

Questions Cloud

Managing the webpage using php : When we open webpage, first folder images are displayed and when we refresh or click on any link it display second folder imagesis this possible utilizing the php.

Probability based on normal distribution and empirical rule : Assuming we can verify that the data set is approximately normally distributed, what percentage of times will the server be down less than 24 minutes?

What is the magnitude of the torque : A car drives north at 42 mi/h for 10 {rm min} and then turns east and goes 5.0 {rm mi} at 62 mi/h. at last, it goes southwest at 30 mi/h for 6.0 {rm min}.

Purpose a bank reconciliation for december 2009 : Bank-Reconciliation-Statement - Purpose a bank reconciliation for December, 2009.

What quantity would a profit-maximizing publisher choose : Compute total revenue, total cost also profit at each quantity. Illustrate what quantity would a profit-maximizing publisher choose. Illustrate what price would it charge.

Determining the frequencies and p-value : 2 to every even-numbered card, with aces being 1s. Determine the frequencies of 0, 1, and 2. Use SPSS to get the value of test statistic and p-value.

What is the total charge on the sphere : A spring has k = 96 Nm. use a graph to determine the work needed to stretch it from x=3.8 cm to x=6.1cm, where x is the displacement from its unstretched length.

Understanding vulnerabilities in risk management : Risk management includes the process of understanding the vulnerabilities and offering the suitable level of security in order to handle the possibilities.

Normality assumption to build confidence interval : What is the best prediction for the number of products sold based on advertising costs of $7000?

User Account

All Pages