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= 60 -0.25P, and the marginal cost of production is $80.
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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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
