Question 1

The University of Ruritania bookstore is the monopoly seller of three textbooks: one in math- ematics, one in economics, and one in psychology.¹ It acquires the textbooks from its supplier for $50 each. Each student at the University, no matter their major, takes one course each in mathematics, economics, and psychology. Each student buys at most one textbook for a course. They may only do so from the University bookstore.

Each student at the University belongs to exactly one of three majors: MATH, ECON and PSY. Students within the same major share the same RP for each of the three books. This information and the number of students in each major is displayed in the table below.

Question 1 The University of Ruritania bookstore is the monopoly seller of three textbooks: one in math- ematics, one in economics, and one in psychology.l It acquires the textbooks from its supplier for $50 each. Each student at the University, no matter their major, takes one course each in mathematics, economics, and psychology. Each student buys at most one textbook for a course. They may only do so from the University bookstore. Each student at the University belongs to exactly one of three majors: MATH, ECON and PSY. Students within the same major share the same RP for each of the three books. This information and the number of students in each major is displayed in the table below. MATH Textbook ECON textbook PSY textbook Number MATH major $100 $80 $65 ECON major $90 $70 PSY major $80 $95