A textbook publisher is in monopolistic competition. If the firm spends nothin...
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A textbook publisher is in monopolistic competition.If the firm spends nothing on advertising, it can sell no books at $100 a book, but for each $5 cut in price, the quantity of books it can sell increases by 80 books per day. The firm's a day on advertising, it can increase the quantity of books sold at each price by
If the publisher advertises, its profit maximizing level of output is books per day.
If the publisher advertises, its profit maximizing price per book is $ .
If the publisher advertises, its maximum profit by $ .
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