Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A book that sounds just perfect for me, Kate Raworth's Doughnut Economics is available on Amazon for $50 for the hardback and $14.67 for paperback.

A book that sounds just perfect for me, Kate Raworth's Doughnut Economics is available on Amazon for $50 for the hardback and $14.67 for paperback. From the publisher's perspective, the difference in the cost between each version of the book seems negligible; it may cost a little bit more to produce the hard cover, but certainly not more than three times as much. Hardback versions usually also get published a few months before paperback versions are published.

How do you explain the different prices for essentially the same product, given that the cost to the publisher of providing each type of book is basically the same?

Amazon also offers the Kindle digital e-book version for $13. The cost to Amazon to produce a new "copy" for the next consumer is virtually nothing; just the sending of some data to the customer's device. Why is Amazon able to charge $13 when its cost is basically zero and the market for books is likely very competitive?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

=+a) Why is there no coefficient for Medium?

Answered: 1 week ago

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago