Question

n​ 2013, a federal judge ruled that Apple colluded with five major U.S. publishers to artificially drive up the prices of​ e-books (which could be read on​ Apple's iPad). Apple collects a​ 30% commission on the price of a book from the publisher. Why would Apple want to help publishers raise their​ price? Given​ Apple's commission, what price would a book cartel want to​ set? ​(Hint​: The marginal cost of an​ e-book is virtually​ zero.) Apple wants to help publishers raise their price because​ Apple's profits are

Answer 1

(1). The reason is Because Apple's Profit are maximized where the publishers profits are maximized.

(2). Check last paragraph.

Step-by-step explanation:

To be sincere really, Apple is not really helping the publishers. From the question above we can see that the company that is Apple do collects a​ 30% commission on the price of a book from each of the United States of America publishers. Therefore, IF the price is INCREASED, Apple will make more commission/profit.

The answer to the second part of the question is that; With Apple's commission, the price that a book cartel will want to​ set will be be done make making sure that OUTPUT are RESTRICTED to where Marginal revenue is zero that is to say profit plus the 30% commission.