A monopoly publisher either pays an author
i)a royalty of x percentage of the revenues from the book, or
ii)a lump- sum amount of L dollars.
Show how the compensation scheme affects the price the publisher sets and the number of books that the publisher sells.

Question

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The Answer of A monopoly publisher either pays an author
i)a royalty of x percentage of the revenues from the book, or
ii)a lump- sum amount of L dollars.
Show how the compensation scheme affects the price the publisher sets and the number of books that the publisher sells.

A Monopoly Publisher Either Pays an Author