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hjlf
3 years ago
10

An author has signed a contract in which the publisher promises to pay her $10,000 plus 20 percent of gross receipts from the sa

le of her book. True or false: If both the publisher and the author care only about their own financial return from the project, then the author will prefer a higher book price than will the publisher.

Business
1 answer:
andre [41]3 years ago
4 0

Answer:

False. The author will NOT prefer a higher book price than will the publisher.

Explanation:

It is evident from the diagram -please check the attached image to the exercise- that the author wants to set a lower price than the publisher (to sell the higher quantity) .

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