on 5 ed out of A book that sounds just perfect for me, Kate Raworth's Doughnut Economics is available on Amazon for $57.57 for the hardback and $15.05 for paperback. From the publisher's perspective, the difference in the cost between each version of the book seems negligible; it may cost a little bit more to produce the hard coy Time left 2:53:58 not more than 3.8 times as much. Hardback versions usually also get published a few months before paperback versions are published. How do you explain the different prices for essentially the same product, given that the cost to the publisher of providing each type of book is basically the same? Select one: O a. The publisher is engaging in block pricing, since it knows that the hardback buyers are a smaller group, and thus each buyer has a smaller level of demand for the book. The paperback buyers are a larger group, and thus each person has a larger demand for the book. O b. The publisher can price discriminate between buyers since people who are excited about the book are more likely to pay the premium for a hardback book that is published sooner, and demanders who are not as excited about the book are more likely to wait for the cheaper paperback price. C. The publisher is bundling the two versions of the book together, since high demanders are more likely to purchase both versions of the book, whereas low demanders are more likely to purchase only one version of the book. Od. The publisher has created a "cost-plus" price policy; the "cost" of paying the author (Raworth) is constant and set in the original contract, and the "plus" is the cost associated with the paper and cover (hard or paper) for each cony of the hook that is sold which may vary depending on how nonular the
on 5 ed out of A book that sounds just perfect for me, Kate Raworth's Doughnut Economics is available on Amazon for $57.57 for the hardback and $15.05 for paperback. From the publisher's perspective, the difference in the cost between each version of the book seems negligible; it may cost a little bit more to produce the hard coy Time left 2:53:58 not more than 3.8 times as much. Hardback versions usually also get published a few months before paperback versions are published. How do you explain the different prices for essentially the same product, given that the cost to the publisher of providing each type of book is basically the same? Select one: O a. The publisher is engaging in block pricing, since it knows that the hardback buyers are a smaller group, and thus each buyer has a smaller level of demand for the book. The paperback buyers are a larger group, and thus each person has a larger demand for the book. O b. The publisher can price discriminate between buyers since people who are excited about the book are more likely to pay the premium for a hardback book that is published sooner, and demanders who are not as excited about the book are more likely to wait for the cheaper paperback price. C. The publisher is bundling the two versions of the book together, since high demanders are more likely to purchase both versions of the book, whereas low demanders are more likely to purchase only one version of the book. Od. The publisher has created a "cost-plus" price policy; the "cost" of paying the author (Raworth) is constant and set in the original contract, and the "plus" is the cost associated with the paper and cover (hard or paper) for each cony of the hook that is sold which may vary depending on how nonular the
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:on 5
ed
out of
A book that sounds just perfect for me, Kate Raworth's Doughnut Economics is
available on Amazon for $57.57 for the hardback and $15.05 for paperback. From the
publisher's perspective, the difference in the cost between each version of the book
seems negligible; it may cost a little bit more to produce the hard coy Time left 2:53:58
not more than 3.8 times as much. Hardback versions usually also get published a few
months before paperback versions are published. How do you explain the different
prices for essentially the same product, given that the cost to the publisher of
providing each type of book is basically the same?
Select one:
O a. The publisher is engaging in block pricing, since it knows that the hardback
buyers are a smaller group, and thus each buyer has a smaller level of
demand for the book. The paperback buyers are a larger group, and thus
each person has a larger demand for the book.
O b. The publisher can price discriminate between buyers since people who are
excited about the book are more likely to pay the premium for a hardback
book that is published sooner, and demanders who are not as excited about
the book are more likely to wait for the cheaper paperback price.
C.
The publisher is bundling the two versions of the book together, since high
demanders are more likely to purchase both versions of the book, whereas
low demanders are more likely to purchase only one version of the book.
Od. The publisher has created a "cost-plus" price policy; the "cost" of paying the
author (Raworth) is constant and set in the original contract, and the "plus"
is the cost associated with the paper and cover (hard or paper) for each
cony of the hook that is sold which may vary depending on how nonular the
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