Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Customer Reservation Price (S/book) CRSTUVWX 8839782879 60 A. 7 B. 6 C. 5 54 48 42 36 30 24 18 Assume that the marginal and average total cost for each book is $22. 22. How much should the bookstore charge for this book if it must charge a single price to all customers? A. $36 B. $12 C. $42 D. $24 23. If the bookstore is selling the socially efficient number of books how many will it sell?

Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Customer Reservation Price (S/book) CRSTUVWX 8839782879 60 A. 7 B. 6 C. 5 54 48 42 36 30 24 18 Assume that the marginal and average total cost for each book is $22. 22. How much should the bookstore charge for this book if it must charge a single price to all customers? A. $36 B. $12 C. $42 D. $24 23. If the bookstore is selling the socially efficient number of books how many will it sell?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.4CE

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Suppose a food company has both food and store divisions. The food divisionproduces burgers that are sold downstream at the store. Assume that the storesells 1,000 burgers at $10, 2,000 burgers at $9, 3,000 at $8, and so on up to10,000 burgers at $1. The price the food division charges for a burger is$3.50. What will be the profit-maximizing price for the entire company? How muchprofit will the company make? What is the revenue-maximizing quantity for thestore?
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1. Where does a firm set its outlut .
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MonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 In a Table calculate TR, MR, TC, AVC, ATC and MC at each price
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