Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 8

Below is demand and cost information for Warmfuzzy Press,which holds the copyright on the new best-seller,Burping Your Inner Child.
a. Determine what quantity of the book Warmfuzzy should print,and what price it should charge in order to maximize profit.
b. What is Warmfuzzy's maximum profit?
c. Prior to publication,the book's author renegotiates his contract with Warmfuzzy. He will receive a great big hug from the CEO,along with a one-time bonus of $1,000,000,payable when the book is published. This payment was not part of Warmfuzzy's original cost calculations. How many copies should Warmfuzzy publish now? Explain your reasoning.