A Textbook Publisher Is in Monopolistic Competition

question 22

Multiple Choice

A textbook publisher is in monopolistic competition.If the firm spends nothing on advertising,it can sell no books at $100 a book,but for each $10 cut in price,the quantity of books it can sell increases by 20 books a day.The firm's total fixed cost is $2,400 a day.Its average variable cost and marginal cost is a constant $20 per book.If the firm spends $1,200 a day on advertising,it can increase the quantity of books sold at each price by 50 percent.If the publisher advertises,its profit maximizing price per book is

• A)$40.
• B)$50.
• C)$60.
• D)$70.
• E)$20.

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Interest Act

Legislation that stipulates regulations regarding the calculation and payment of interest on various types of loans and debts.

Criminal Code

is a document that compiles all criminal laws and procedures in a particular jurisdiction.

Vulnerable State

A condition in which an individual or group is unable to protect themselves against significant harm or exploitation due to various factors.

Consumer Transactions

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