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

question 25

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 below shows the reservation prices of the eight students enrolled in the class. $$\begin{array} { | c | c | } \hline \text { Student } & \begin{array} { c } \text { Reservation Price } \\\text { (\$/Book) }\end{array} \\\hline \mathrm { Q } & 60 \\\hline \mathrm { R } & 54 \\\hline \mathrm { S } & 48 \\\hline \mathrm { T } & 42 \\\hline \mathrm { U } & 36 \\\hline \mathrm { V } & 30 \\\hline \mathrm { W } & 24 \\\hline \mathrm { X } & 18 \\\hline\end{array}$$ What will be Campus Books' economic profit if it must charge a single price to all of its customers?

• A)$180
• B)$130
• C)$128
• D)$120

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Definitions:

Quality of Care

The degree to which health care services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge.

Managed Care

A healthcare delivery system designed to manage cost, utilization, and quality, often through coordination of care and provider networks.

Institutional Isomorphism

A concept in sociology that explains how institutions tend to become more similar to one another over time due to various pressures that encourage standardization.

Preferred Provider

A healthcare provider who has a contract with an insurer to provide services to plan members for specific pre-negotiated rates.