A Book Vendor Can Produce a Book at a Constant

question 16

Multiple Choice

A book vendor can produce a book at a constant MC equal to zero, and its potential buyers have the following reservation prices: $55, $50, $45, $40, $35, $30, $25, $20, $15, $10, $5. If the book vendor must announce a take it or leave it price (i.e., he cannot price discriminate) , what price maximizes profits?

• A)$30
• B)$35
• C)$25
• D)$40

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