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    Managerial Economics Study Set 1
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    Exam 12: Direct Price Discrimination
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    ​Hardcover Books The Marginal Cost of Printing a Typical Hard Cover Novel
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​Hardcover Books The Marginal Cost of Printing a Typical Hard Cover Novel

Question 37

Question 37

Essay

​Hardcover Books
The marginal cost of printing a typical hard cover novel is $12.00 while the same book in paperback has a marginal cost of $2.00 lower.So why do publishers charge an average of $15 more for hard cover books?

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Hard cover versus paperback is used as a...

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