Question
A monopolistically competitive firm is considering selling several units of the same product as a single package.A typical consumer's demand for the product is Q
A monopolistically competitive firm is considering selling several units of the same product as a single package.A typical consumer's demand for the product isQ = 10 - 0.5Pand the total cost function isC(Q) = 8Q.
Optimal number of units = 6
What is the optimal price to charge for the package?
What are the profits for this pricing scheme?
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
