A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer's demand for the product is Qd = 70 -0.25P, and the marginal cost of production is $100. a. Determine the optimal number of units to put in a package b. How much should the firm charge for this package?

A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer's demand for the product is Qd = 70 -0.25P, and the marginal cost of production is $100. a. Determine the optimal number of units to put in a package b. How much should the firm charge for this package?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 4E

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