Business, 15.04.2021 18:50 kers

A firm that sells e-books - books in digital form downloadable from the Internet - sells all e-books relating to do-it-yourself topics (home plumbing, gardening, and so on) at the same price. At present, the company can earn a maximum annual profit of $40,000 when it sells 35,000 copies within a year's time. The firm incurs a 50-cent expense each time a consumer downloads a copy, but the company must spend $100,000 per year developing new editions of the e-books. The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 30,000 copies. Under marginal cost pricing, it could sell 110,000 copies. In the short run, to the nearest cent, what is the profit-maximizing price of e-books relating to do-it-yourself topics? $nothing. At the profit-maximizing quantity, to the nearest cent, what is the average total cost of producing e-books? $nothing.

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A firm that sells e-books - books in digital form downloadable from the Internet - sells all e-bo...

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