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April 21, 2014

Homework Help: managerial economics

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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