A monopolistically competitive firm is considering selling several units of the same product as a single package. A typical consumer's demand for the product is Q = 10 - 0.5P and the total cost function is C(Q) = 8Q. What is the optimal number of units to put into a package? What is the optimal price to charge for the package? What are the profits for this pricing scheme
A monopolistically competitive firm is considering selling several units of the same product as a single package. A typical consumer's demand for the product is Q = 10 - 0.5P and the total cost function is C(Q) = 8Q. What is the optimal number of units to put into a package? What is the optimal price to charge for the package? What are the profits for this pricing scheme
Chapter9: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 3SQ
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What is the optimal number of units to put into a package?
What is the optimal price to charge for the package?
What are the profits for this pricing scheme?
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