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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
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 = 70 0.25P, 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?
I get 22.5 and $190, but "check my work" say's it's wrong... I rounded up to 23 and $188, and it was still wrong.
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