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 = 50 − 0.25P, and the marginal cost of production is $120. 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 = 50 − 0.25P, and the marginal cost of production is $120. a. Determine the optimal number of units to put in a package. units b. How much should the firm charge for this package? $

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 2SQP

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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 = 100 − 0.25P, and the marginal cost of production is $140. a. Determine the optimal number of units to put in a package. b. How much should the firm charge for this package?
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