I. A publisher faces the following demand schedule for the next novel from one of its popular authors: Price Quantity Total Revenue Fixed Costs Total Cost | Profit Marginal ($) (1,000) ($1,000) ($1,000) ($1,000) ($1,000) Revenue ($) 100 10 2000 90 100 2000 80 200 2000 70 300 2000 60 400 2000 50 500 2000 40 600 2000 30 700 2000 20 800 2000 10 900 2000 0 1000 2000 The author is paid $2 million to write 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. What quantity would a profit-maximizing publisher choose? What price would it charge? b. Compute marginal revenue. How does marginal revenue compare to the price? Explain. c. Graph the marginal revenue, marginal cost, and demand curves. At what quantity do the marginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author were paid $3 million instead of $2 million to write the book, how would this affect the publisher's decision regarding what price to charge? Explain 2/8 vivo X60 . ZEISS 2022/06/26 14:00