A Textbook Publisher Is in Monopolistic Competition

question 253

Multiple Choice

A textbook publisher is in monopolistic competition. The firm 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 average variable cost and marginal cost is a constant $20 per book. What is the firm's markup?

• A) zero
• B) $20
• C) $40
• D) $60

---

Definitions:

Address

In computing, an address refers to a specific location in memory or storage that can be used to access data.

Interpreter

A program that reads and executes code directly, translating high-level instructions into machine code one statement at a time.

Bytecode Instruction

An intermediate code generated by compiling high-level programming code, which is then executed by a virtual machine.