A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumers demand for the product is Qd = 70 - 0.5P, and the marginal cost of production is $90. a. Determine the optimal number of units to put in a package. b. How much should the firm charge for this package
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumers demand for the product is Qd = 70 - 0.5P, and the marginal cost of production is $90. a. Determine the optimal number of units to put in a package. b. How much should the firm charge for this package
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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