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= 130 -0.25P, and the marginal cost of production is $160.
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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Puzzle Of Latin American Economic Development
Authors: Patrice Franko
2nd Edition
0742524663, 9780742524668
