Bob's Books is the only bookstore in town. The figure above shows ...

[pane00]

Bob's Books is the only bookstore in town. The figure above shows the demand curve for books and Bob's Books' marginal revenue curve and marginal cost curve.
 
  Bob's Books maximizes its profit and sets the price of a book equal to ________ and has total annual revenue of ________. A) 40; 40,000
  B) 30; 60,000
  C) 20, 60,000
  D) 10; 40,000

Question 2

Of the following, the best example of firm that might operate in a contestable market is a
 
  A) cable TV company.
  B) wheat farmer.
  C) ship owner operating on a major waterway.
  D) private college operating in a state with many public colleges.

[beccamahon]

Answer to Question 1

B

Answer to Question 2

C

[pane00]

Gracias!

[amcvicar]

Thanks for the timely response, appreciate it