Quiz 4 - N ame StudentN o I.cfw_NGARA COLLEGE Economics296...

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Name: Student No: I.{NGARA COLLEGE Economics 2296 l0 minutes, l0 marks April 15, 2010 No books, notes, ssrap paper or electronic devices allowed, with the excepion of a simple, nonprogrammable calculator. Answer the following question. Explain your answers fully, show all work. 1) Shooting Star Books is a snull publishing company that spscializes in scislse fiction books. Like most publislrers, Shooting Star releases new books in hard-cover forur and later releases paper-back versions of the books. The marginal cost of printing both types of books is $2 per bool and Shooting Star maximizes profits by practicing intertemporal price discrirrination, The annual demand for recently released (hard-cover) books is Ql = 4{n - 10Pl where quantity demanded is measured in thousands oI books and price is measured in dollars per book. The annual demand for the paper-back version of previously released books is Q2 = 800 - lOpZ. a. What are the marginal revenue curves associated with the two demand curves
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