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

question 130

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 is the socially optimal number of books?

• A)8
• B)5
• C)6
• D)7

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Definitions:

X Chromosome

One of the two types of sex chromosomes, present in both males and females, that plays a key role in determining genetic traits and sex.

Genitalia

The external and internal organs of the reproductive system in both males and females.

Primary Sex Characteristics

The physical features directly involved in reproduction, such as the ovaries in females and testes in males.

Hormones

Chemical messengers produced by glands in the body, which travel through the bloodstream to tissues or organs, affecting various physiological processes.