Sunday
April 20, 2014

Homework Help: economics

Posted by Anonymous on Tuesday, April 10, 2012 at 7:10am.

A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics (home plumbing, gardening, and so on) at the same price. At present, the company can earn a maximum annual profit of $25,000 when it sells 10,000 copies within a year’s time. The firm incurs a 50-cent expense each time a consumer downloads a copy, but the company must spend $100,000 per year developing new editions of the e-books. The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. Under marginal cost pricing, it could sell 100,000 copies.

In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself topics?
At the profit-maximizing quantity, what is the average total cost of producing e-books?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

MATHS - Mrs.Koh purchased new books for the school library, of which 6 were ...
math - daniel collects $87.00 by selling paperback books for $0.50 each and ...
Reading - Rosalind Wiseman books Terra Elan McVoy books Susane Colasanti books ...
math - lara arranged the books in her bookshelf by size. 2/10 of the books were ...
Math - A book store sells books for $4 each. When a customer purchases 2 books ...
math - MEghan had 36 books in her locker. Some were library books, text books ...
Maths - 20% of the books in a library were fiction books while the rest were non...
math - A woman goes to a store that sells used books and spends half of her ...
3rd grade math - There are 30 books in a bookcase. The books in the bookcase are...
statistics - A popular online retailer sells a wide variety of products ...

Search
Members