a us texybook publisher is introducing a new
economics- it is no graphing matter, to the domestic market. Each
book is produced at a constant marginal cost of $80 pè book.
Management predicts that annual domestic demand for the book is Pd
=284- 0.4Qd, where Pd = price of a book in dollars, and Ad denotes
the number of books (in thousands).
a. Determine the optimal quantity and price of the book in the
domestic market
b. The company is also considering supplying the international textbook Market, where marginal cost is $92 per book due to higher shipping costs. Foreign demand is Pf = 210- 0.5Qf. Determine the optimal quantity and price of the book in the domestic market.
c. Due to limited printing capabilities, the total capacity for books is set at 315. Determine the optimal quantity in both the domestic and foreign market.
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