Why Do Publishers Print the First Edition of a Book

question 341

Multiple Choice

Why do publishers print the first edition of a book by a popular author in hard cover and not in paperback?

• A) Hard cover books are long lasting and paperbacks can rip easily.
• B) Readers who want to read the book as soon as it comes out will be willing to pay a higher price compared to those who can wait for the paperback edition.
• C) A hardcover is the publishers' way of rewarding the avid readers.
• D) Publishers are not sure of the demand.
• E) Publishers cannot price discriminate.

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Definitions:

Premiums

Additional amounts paid over the normal cost or value, often related to insurance policies or bond prices above their face value.

Discounts

Reductions to the selling price of goods or services that can be applied for various reasons, such as to encourage prompt payment or to move inventory quickly.

Face Value

The nominal or dollar value printed on a bond or a stock certificate, representing the amount due to the holder at maturity.

Straight-Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.