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Campus Bookstore Is the Only Textbook Supplier in the Town,a

Question 99

Multiple Choice

Campus Bookstore is the only textbook supplier in the town,a profit-maximizing business.The table below represents the reservation prices for the eight students enrolled in the class for which this book is required.  Customer  Reservation Price  ($/book)  Q60R54 S48 T42U36 V30 W24X18\begin{array} { c c } \text { Customer } & \begin{array} { c } \text { Reservation Price } \\\text { (\$/book) }\end{array} \\\mathrm { Q } & 60 \\\mathrm { R } & 54 \\\mathrm {~S} & 48 \\\mathrm {~T} & 42 \\\mathrm { U } & 36 \\\mathrm {~V} & 30 \\\mathrm {~W} & 24 \\\mathrm { X } & 18\end{array}
Assume that the marginal and average total cost for each book is $12.
If the bookstore can charge two different prices for this book,the economic profit for the bookstore is ______.


A) greater than $120
B) less than $120
C) exactly $120
D) exactly $48

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