Question: Amonopoly is considering selling several units of a homogeneous product

Amonopoly is considering selling several units of a homogeneous product as a single package. Atypical consumer’s demand for the product is Qd = 80 - .5P, and the marginal cost of production is $ 100.
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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  • CreatedApril 18, 2014
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