A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer's demand for the product is Qd = 110 - 0.5P, and the marginal cost of production is $140. a. Determine the optimal number of units to put in a package. units 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. Analysts at your firm have determined that a typical consumer's demand for the product is Qd = 110 - 0.5P, and the marginal cost of production is $140. a. Determine the optimal number of units to put in a package. units b. How much should the firm charge for this package? $

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 14E

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