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

question 128

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.  
$$\begin{array} { | c | c | } \hline \text { Custamer } & \begin{array} { c } \text { Reservutian Price } \\\text { (S/Bank) }\end{array} \\\hline \mathrm { Q } & 60 \\\hline \mathrm { R } & 54 \\\hline \mathrm { S } & 48 \\\hline \mathrm { T } & 42 \\\hline \mathrm { U } & 36 \\\hline \mathrm { V } & 30 \\\hline \mathrm { W } & 24 \\\hline \mathrm { X } & 18 \\\hline\end{array}$$ If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then the bookstore will set the list price of the book to be ________ and the discounted price of the book to be ________.

• A)$30; $24
• B)$36; $30
• C)$36; $24
• D)$30; $18.

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