Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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= 80 - .5P, and the marginal cost of production is $100.
a. Determine the optimal number of units to put in a package.
30units
b. How much should the firm charge for this package?
$
I have the answer for A but having trouble with B.... and the answer is not 900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started