1. A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics – It is no Graphing matter, to the domestic market. Each book is produced at a constant marginal cost of $80 per book. Management predicts that annual domestic demand for the book is: P_D = 284 – 0.4Q_D, where P_D = price of a book in dollars, and Q_D denotes the number of books (in thousands).

Due to limited printing capabilities, the total capacity for books is set at 315 (three hundred and fifteen). Determine the optimal quantity in both the domestic market and in the foreign market.

Answer rating: 100% (QA)

To determine the optimal quantity in both the domestic and foreign markets we can start by finding t... View the full answer