The National Association of College Stores points out “more than 77 cents of every dollar spent on textbooks go to publishers. Of those 77 cents, the publishing company makes about 18 cents in pure profit, while spending 15 cents on marketing, and roughly 32 cents to cover costs paper, printing, employee salaries” (Here Is Why College Textbooks Are Expensive). Remarkably, this is a monopoly. With no close substitutes, the monopolist can derive super-normal profits. This means the publishers can relax and enjoy the profits. The lack of market regulations will leave the textbook market even worse. Consequently, what can we do to avoid the
The National Association of College Stores points out “more than 77 cents of every dollar spent on textbooks go to publishers. Of those 77 cents, the publishing company makes about 18 cents in pure profit, while spending 15 cents on marketing, and roughly 32 cents to cover costs paper, printing, employee salaries” (Here Is Why College Textbooks Are Expensive). Remarkably, this is a monopoly. With no close substitutes, the monopolist can derive super-normal profits. This means the publishers can relax and enjoy the profits. The lack of market regulations will leave the textbook market even worse. Consequently, what can we do to avoid the