Economics for Managers

6. Consider this statement: “Conservationists want to save too many spotted owls.”Use graphical analysis accompanied by a concise narrative discussion to explaincircumstances under which this statement would be true. Make sure your graphshave clearly labeled axes and curves. [Note: Good answers are dispassionate andlogical.]7. A publisher of a new novel has spent $250,000 setting the type. The publisher mustspend $1 million advertising the new book. It is now ready to print the book. Forpractical purposes, as many books as they like can be printed. In deciding howmany 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.Chapter 3: Marginal Analysis for Optimal Decisions79