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=130-0.25P, and the marginal cost of production is $160. 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=130-0.25P, and the marginal cost of production is $160. a. Determine the optimal number of units to put in a package. units b. How much should the firm charge for this package?
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Transcribed Image Text: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=130-0.25P, and the marginal cost of production is $160.
a. Determine the optimal number of units to put in a package.
units
b. How much should the firm charge for this package?
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