Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class. What will be Campus Books' economic profit if it must charge a single price to all of its customers?
A) $180
B) $130
C) $128
D) $120
Correct Answer:
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