Business, 12.08.2021 01:00 destromero

A publisher faces the following demand schedule for the next novel from one of its popular authors: Price Quantity Demanded
40 0
36 50,000
32 100,000
28 150,000
24 200,000
20 250,000
16 300,000
12 350,000
8 400,000
4 450,000
0 500,000

The author is paid $800,000 to write the novel, and the marginal cost of publishing the novel is a constant $4 per copy. Which of the following quantityâ€“price combinations would a profit-maximizing publisher choose?

a. 150,000 copies at a price of $28
b. 200,000 copies at a price of $24
c. 250,000 copies at a price of $20
d. 300,000 copies at a price of $16

Answers: 3

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

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