Q. A publisher faces the following demand schedule for the next novel of one of its popular authors

p: 100,90,80,70,60,50,40,30,20,10,0

Quantity demanded: 0, 100 000,200 000,300000, 400000, 500000, 600000, 700000, 800000, 900000, 1000000.

The author of the book was paid 2million 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 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 the graph shade in the deadweight loss. explain in words what it means

e. if the author were paid 3 million instead of 2 million to write the book how would this affect the publishers decisions regarding the price to charge? explain

f. suppose the publisher was not profit maximizing but was concerned with maximizing economic efficiency. what price would it charge for the book? how much profit would it make at this price?