1. A publisher faces the following demand schedule for the next novel of one of its popular authors: Quantity Total Total Marginal Marginal Price Demanded Revenue Cost Prot Revenue Cost $100 0 _ _ _ _ _ _ _ 90 1 00 ,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 write the hook, and the marginal cost of publishing the hook is a constant $10 per book. (a) Compute total revenue, total cost, and prot at each quantity. What quantity would a prot-maximizing publisher choose? What price would it charge? (b) Compute marginal revenue and marginal cost. (Recall that M'R = ATR/AQ and 1M R = ATC/AQ.) How does marginal revenue compare to the price? Explain