Question
Suppose you are the author of a small booklet and your publishing company agrees to pay you a royalty on each copy it sells. The
Suppose you are the author of a small booklet and your publishing company agrees to pay you a royalty on each copy it sells. The booklet is sold in bundles of ten. The company has the following inverse demand curve: P = 100 -Q where P is the price per bundle sold and Q is the amount of bundles sold in a week. It costs the company $2 per bundle of ten copies for promotion. What price would you like the company to sell your booklets at? Will the company accept the price you suggest? Explain using appropriate calculations. (Drawing a graph will help
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