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Unformatted text preview: for your attention. A buyer in this market has thousands of competing products from which to choose. And because anyone can enter the industry by writing and publishing a book, the book business is not very profitable. For every highly paid novelist, there are hundreds of struggling ones. On the other hand, the market for books seems monopolistic. Because each book is unique, publishers have some latitude in choosing what price to charge. The sellers in this market are price makers rather than price takers. And, indeed, the price of books greatly exceeds marginal cost. The price of a typical hardcover M O N O P O L I S T I C C O M P E T I T I O N 377...
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- Spring '10