Posted by **Nemin** on Wednesday, September 21, 2011 at 9:35pm.

A publisher of a new novel has spent $250,000 setting the type. The publisher must

spend $1 million advertising the new book. It is now ready to print the book. For

practical purposes, as many books as they like can be printed. In deciding how

many copies to run,

a. does the cost of typesetting have any influence on the publisher’s decision?

Explain.

b. does the cost of advertising have any influence on the publisher’s decision?

Explain.

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