Author Question: Publishers charge much higher prices for a book in hardcover than for the same book in paper cover ... (Read 189 times)

EY67 · **on:** Jun 29, 2018

Publishers charge much higher prices for a book in hardcover than for the same book in paper cover because

A) the demand for hardcover books is less elastic at the same price.
B) the marginal cost of attaching hardcovers is very high.
C) there are larger sunk costs in the production of hardcover editions.
D) they have less bargaining power against bookstores in marketing paperback editions.
E) they want to subsidize students.

Question 2

What is required for a negative externality to occur?

A) The intention or plan to directly impose costs on others
B) The full costs of an action aren't taken into account
C) A total lack of concern for other people's welfare
D) Greed