A publisher faces the following demand schedule for the nextnovel from one of its well-known authors:
Price | QuantityDemanded |
---|---|
(Dollars) | (Duplicates) |
50 | 0 |
45 | 100,000 |
40 | 200,000 |
35 | 300,000 |
30 | 400,000 |
25 | 500,000 |
20 | 600,000 |
15 | 700,000 |
10 | 800,000 |
5 | 900,000 |
0 | 1,000,000 |
The author is paid $500,000 to create the novel, and the marginalcost of submitting the book is a constant $15 per copy.
Complete the second, fourth, and fifth columns of the followingtable by processing total revenue, total cost, and income at eachquantity.
Jul 24, 2018 - 1 Answer to A publisher faces the following demand schedule for the next novel from one of its popular authors: The author is paid $2 million to. A publisher faces the following demand schedule for the next novel one of its popular authors: price quantity demanded $100 0 90 100,000 80 200,000 70 300,000 60 400,000 50 500,000 40 600,000 30 700,000 20 800,000 10 900,000 0 1,000,000 The author is paid $2 million to wite the book, and the marginal cost of publishing the book is a constant $10 per book. A)compute total revenue, total cost, and profit at each quantity.
Complete the 3rd line of the prior table by computingmarginal revenue. (Hint: Recallthat.)
Correct or False: At each quantity, marginal revenue is less thanthe cost.
Real
False
Make use of the black factors (plus symbol) to chart the marginalrevenue from the 100,000th, 200,000th, 300,000th, 400,000th,500,000th, and 600,000th duplicate of the novel. Remember to plot fromleft to correct and to plot of land between integers. For illustration, if themarginal income of growing production from 100,000 duplicates to200,000 duplicates will be 10, after that you would piece a stage at (150, 10).Next use the tangerine range (square symbol) to graph the marginal-costcurve faced by the publisher. Finally, use the glowing blue factors (circlesymbol) to chart demand at the following amounts (in thousands):0, 100, 200, 300, 400, 500, 600, 700, 800, 900, and 1,000.
he marginal-revenue and marginal-cost curves intersect at aquantity of?copies.
On the earlier graph, make use of the black triangle (plus icons) toshade the area representing deadweight loss.
If the author were paid $400,000 rather of $500,000 to writethe guide, the publisher would( Boost / DECREASE/ NOTCHANGE)the cost it fees for a duplicate of the novel.
Suppose the publisher had been not profit-maximizing but wasconcerned with maximizing economic efficiency, and the writer of anovel will be paid $500,000 to compose the book.
In this case, the publisher would charge$for a copy of the novel and earn aprofit of$. (Be aware: Ifthe publisher encounters a reduction, be certain to get into a negativenumber for revenue.)