Log in
Economics
1
answer
0
watching
68
views
2 Jan 2019

Why do you suppose that some publishers are selling space for advertisements in their e-books-- and sometimes even in physical books?

From an economic standpoint, how could we explain the willingness of someone to pay 19.99 for a physical book that is available as an e-book for 9.99?

Watch
1
answer
0
watching
68
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nestor Rutherford
Nestor RutherfordLv2
4 Jan 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

7. Other things being equal, what will happen to automakers❝ profits if they are able to sell more vehicles using battery packs and thereby scale up battery production?

8. Why do you suppose that some automakers support the payment of government subsidies to consumers who purchase hybrid and all-electric passenger vehicles?

9. If input prices had increased as firms entered the lithium industry in response to rising demand, what would have been the shape of the long-run supply curve?

10. If the market demand for lithium were to decrease during the 2020s. what would happen to the market clearing price of lithium in the long run?

11. Why do you suppose that employment growth is about 20 percent greater in unlicensed occupations than in licensed occupations?

12. What do you suppose a typical state government does with the millions of dollars of occupational license fees it receives each year.

13. Why do you suppose that some publishers are selling space for advertisements in their e-books❝and sometimes even in physical books?

14. From an economic standpoint, how could we explain the willingness of someone to pay $19.99 for a physical book that is available as an e-book for $9.99?

note all the things that could be improved with the denial email.

Denial Request for Discussion (Adapted from connect.thomsonlearning.com)

Dear Rich,

Out of the 97 books you returned to us, only 25 are acceptable. Our return policy is very specific as to the condition the books must be in before we will accept them. Some of the books you sent did not even come close to meeting our return conditions. It costs us extra time to go through boxes of unacceptable books; it costs you extra money to send them to us and then pay again to have them returned to you.

In each book order we include a copy of our return policy. Attached is an extra one for you to put near the place you sort books. As you can see, it states that we give 100 percent credit on some books. But they have to be returned in saleable condition. That means they must be new and have no marks inside them. They have to be returned within 12 months of the original invoice. For old editions, returned books will not be accepted if they are not within 90 days of our announcement of a new edition. Returned books must also be returned with a copy of the original invoice.

You returned 31 copies of Hefferman's College Writing Handbook, 2nd edition. We couldn't accept this return because we announced its third edition 14 months ago. Donner's Introduction to Marketing (22 copies) could not be accepted because they were imprinted with your bookstore name and price on the inside cover. You also sent 14 copies of books from various authors, but we can't give credit for these copies because we did not publish them.

Although you have a good record of placing orders and paying on time, this return shipment had many problems. Despite the large number of unacceptable returns, we are crediting your account for $626.25. This is for 25 copies of Miller's The Promotable Woman at a price of $31 each. We charged a 15 percent restocking fee plus $32.50 shipping for returning the unacceptable books.

If you have any questions, do not hesitate to respond. We appreciate you being our costumer.

Sincerely,

Joe Smith

You are a produce grocer who sells two products: apples and bananas (you sell them in bushels, but we’ll just consider a bushel to be one unit of fruit). Each costs you $1 per bushel wholesale, which is your only cost. You can prevent resale among your customers, of which there are three, each with unit inelastic demand. Consumer 1 has a willingness to pay of $2 per apple (bushel) and $8 per banana (bushel). For Consumer 2, the willingness to pay is $4 for apples and $6 for bananas. Consumer 3 would pay up to $9 for apples but only $1 for bananas.

A. Suppose you price apples and bananas separately. What is the profit-maximizing price for each?

B. What is the profit-maximizing price if you sell the two fruit as a pure bundle?

C. What leads to higher profits – selling separately or offering a pure bundle? Explain how this answer relates to the correlation in consumers’ willingness to pay across apples and bananas.

D. Can you do better by mixed bundling? Explain why or why not?

E. Does your answer to part (d) change if your production cost is $3 per unit instead?

Related Documents

ECO204Y5
Final Exam
Study Guide
ECO204Y5 Study Guide - Midterm Guide: Arc Elasticity, Playstation 4, Budget Constraint
jadesnake949
ECO 1104 Chapter Notes - Chapter 1-2: Planned Economy, Macroeconomics, Fiscal Policy
turquoisedog937
ECO 1104 Lecture Notes - Lecture 7: Opportunity Cost, Normal Good, Ceteris Paribus
coralhamster639

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in