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 isQd= 120 -0.5P, and the marginal cost of production is $150.
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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Microeconomics
Authors: Paul Krugman, Robin Wells
5th edition
1319098780, 1319098789, 978-1319098780
