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Q 3 . ( 1 0 points ) Suppose you are a print house manager for newspapers. Your cost is 2 0 cents per newspaper,
Q points Suppose you are a print house manager for newspapers. Your cost is cents per
newspaper, and you charge the retailer cents per newspaper. The retailer sells to customers at
$ per newspaper. Any unsold newspaper is returned to you for full refund of the wholesale price.
Demand for newspapers is uniformly distributed between and
a How many newspapers should you print? points
b The retailer would like to "induce" you to print more newspapers. Therefore, the retailer
agrees to "payback" unsold newspapers at price $ cents per newspaper. How many
newspapers will you print? points
c What payback price should the retailer offer to induce you to print the quantity that
maximizes the combined profit of you and the retailer? points
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