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 is the socially optimal number of books?
A) 8
B) 5
C) 6
D) 7
Correct Answer:
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