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 publisher's profit-maximizing level of output? A) 60 books per day
B) 80 books per day
C) 100 books per day
D) 120 books per day
B
You might also like to view...
The figure shows the relationship between Moira's income and the quantity of macaroni that she demands. When income is less than $350 per month, macaroni ________
A) is an inferior good B) is a normal good C) has many substitutes D) has negative income elasticity
If Australia has more land per worker, and Belgium has more capital per worker,then if trade began between these two countries
A) the real income of landowners in Belgium would decline. B) the real income of capital owners in Australia would increase. C) the real income of labor in Australia would decline. D) the real income of labor in Belgium would decline. E) the real income of labor in both countries would decline.
Which one of the following groups benefits from inflation?
a. Borrowers. b. Savers. c. Landlords. d. Lenders.
What is the most probable reason why garbage collectors have higher wages than bookkeepers?
a. Employment discrimination b. A high unionization rate for bookkeepers c. A higher educational requirement for garbage collectors than bookkeepers d. The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors.