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Consider a monopolist serving a group of identical individual users. Each user's demand equals P = 12 - 2q.The marginal cost of production is constant
Consider a monopolist serving a group of identical individual users. Each user's demand equals P = 12 - 2q.The marginal cost of production is constant and equals $4 per unit. The monopolist decides to sell a single bundle or take-it-or-leave-it offer, to each customer. How many units does the monopolist include in the bundle? What price does it charge for the bundle? How much profit does it earn from each bundle?
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