Question
MonoPublishing Incorporated is the sole publisher of a hot new book, an economics action thriller titled Maximum Surplus. The book is only available as a
MonoPublishing Incorporated is the sole publisher of a hot new book, an economics action thriller titled "Maximum Surplus." The book is only available as a digital e- book download from MonoPublishing. The marginal cost of selling an e-book copy is zero. Just like Amazon Kindle books, it is impossible to transfer ownership of a MonoPublishing e-book to someone else after you buy it. Economics nerds are willing to pay $35 for the book. Regular readers are only willing to pay $5 for the book. MonoPublishing can tell which of its customers are economics nerds with 100% accuracy because economics nerds have a history of purchasing economics books from the site. You are a business analyst at MonoPublishing. The CEO asks for your opinion on how to price the new book. Would you tell her to charge a single uniform price for every e-book the company sells? Explain why or why not.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started