4:21lLTEWork9. Suppose Campus Books, a profit-maximizing firm, is the only supplier of thetextbook for a given class. The marginalcost of supplying each book is constantand equal to $10, and Campus Books hasno fixed costs. The table below shows thereservation prices of the eight studentsenrolled in the class.Reservation PriceStudent(SBook)60544842U36V302418If Campus Books is permitted to charge 2prices, and the bookstore knows customerswith a reservation price above $30 neverbother with coupons, whereas those with areservation price of $30 or less always usethem, then the bookstore will set the list priceof the book to beand the discountedprice of the book to beRST

Given the reservation price of the students, the profit-maximizing firm set the book price to be $36…

Answered: 4:21 lLTE Work 9. Suppose Campus Books,…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 12SQP

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