A publisher of a new novel has spent $250,000 setting the type. The publisher must spend $1 million advertising the new book. It is now ready to print the book. For practical purposes, as many books as they like can be printed. In deciding how many copies to run.
a. does the cost of typesetting have any influence on the publisher’s decision? Explain.
b. does the cost of advertising have any influence on the publisher’s decision? Explain.