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The author would prefer a lower price than the publisher.

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11y ago
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2mo ago

No, the author and publisher may not necessarily want to charge the same price for the text. The author would benefit from a higher price because they receive a percentage of the revenue, while the publisher may want to maximize profits by finding the optimal price that balances revenue and sales volume.

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Q: Assume the monopolistic publisher agreed to pay an author 15 percent of the total revenue from sales of text. Will the author and publisher want to charge the same price for the text?
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