Shooting Star Books is a small publishing company that specializes in science fiction books.

in Business (Education) by hemsworth
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Description

Shooting Star Books is a small publishing company that specializes in science fiction books.

Like most publishers, Shooting Star releases new books in hardcover form and later releases

paperback versions of the books. The marginal cost of printing both types of books is 2 per book,

and Shooting Star maximizes profits by practicing intertemporal price discrimination. The annual

demand for recently released (hardcover) books is Q1400-10P1, where quantity demanded is

measured in thousands of books and price is measured in dollars per book. The annual demand

for the paperback version of previously released books is Q2800-40P2

a. What are the marginal revenue curves associated with the two demand curves for books?

b. What are the profit maximizing prices for hardcover and paperback...

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hemsworth
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Published On:
12/19/2014
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shooting-star-books-is-a-small-publishing-company-that-specializes-in-science-fiction-books-17.doc
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