A former movie-star is planning on writing a \"tell-all\" memoir that details th

Question

A former movie-star is planning on writing a "tell-all" memoir that details the behind the scenes stories of all of her movies. It is expected to be a best-seller and many publishers who would like to be the one to publish the book are quietly contacting the actress's managers to obtain the rights.

Question: Assuming the book sells as well as the publishers expect, should the publisher that secures the rights to publish the manuscript expect to earn large profits by doing so? On what factors might your answer depend?

Explanation / Answer

Yes, if the publisher gets exclusive rights to the sale of the book then he can earn large profits.It is because he will be the only seller of the book and there is no competition in the market ( like monopoly).So,he can charge high price for each copy and earn high profits.

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