Suppose Campus Books, a Profit-Maximizing Firm, Is the Only Supplier

question 103

Multiple Choice

Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class.  
$$\begin{array} { | c | c | } \hline \text { Custamer } & \begin{array} { c } \text { Reservutian Price } \\\text { (S/Bank) }\end{array} \\\hline \mathrm { Q } & 60 \\\hline \mathrm { R } & 54 \\\hline \mathrm { S } & 48 \\\hline \mathrm { T } & 42 \\\hline \mathrm { U } & 36 \\\hline \mathrm { V } & 30 \\\hline \mathrm { W } & 24 \\\hline \mathrm { X } & 18 \\\hline\end{array}$$ What is the socially optimal number of books?

• A)8
• B)5
• C)6
• D)7

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Definitions:

Secondary Male Sex Characteristic

Physical traits in males that are not directly involved in reproduction, such as facial hair, deepening of the voice, and muscle development, which typically emerge during puberty.

Pubic Hair

is hair that grows in the genital area during puberty as a secondary sexual characteristic in humans.

Penis

The male external sex organ involved in sexual intercourse, urination, and the conveyance of semen.

Genetic Female

An individual whose chromosomes, at birth, present as XX, typically leading to the development of female anatomical and physiological characteristics.