Campus Bookstore Is the Only Textbook Supplier in the Town,a

question 11

Multiple Choice

Campus Bookstore is the only textbook supplier in the town,a profit-maximizing business.The table below represents the reservation prices for the eight students enrolled in the class for which this book is required. $$\begin{array} { c c } \text { Customer } & \begin{array} { c } \text { Reservation Price } \\\text { (\$/book) }\end{array} \\\mathrm { Q } & 60 \\\mathrm { R } & 54 \\\mathrm {~S} & 48 \\\mathrm {~T} & 42 \\\mathrm { U } & 36 \\\mathrm {~V} & 30 \\\mathrm {~W} & 24 \\\mathrm { X } & 18\end{array}$$
Assume that the marginal and average total cost for each book is $12.
Refer to the information above.If the bookstore can charge two different prices for this book,the list price for the book will be _____ and the discounted price for the book will be ____.

• A)$18;less than $12
• B)$60;$36
• C)$36;less than $36
• D)more than $36;less than $12

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Definitions:

Capacity Constraint

A limitation on the resources available for production, such as time, labor, or materials, which can affect the maximum output levels.

Double-subscripted Variables

Variables in mathematical modeling that are indexed by two sets, often used to represent the elements in a matrix or a two-dimensional array.

Capacity Constraint

A limitation or restriction on the maximum level of output that a system or process can handle.

Double-subscripted Variables

Variables that are identified by two subscripts, often used in mathematical and statistical models to represent two-dimensional data.