Question
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer's demand for the product is Q d
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer's demand for the product is Qd = 70 -0.5P, and the marginal cost of production is $90.
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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Applied Econometric Time Series
Authors: Walter Enders
4th Edition
1118808568, 9781118808566
