A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer's demand for the product is Qd = 120 – 0.25P, and the marginal cost of production is $160. a. Determine the optimal number of units to put in a package.

A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer's demand for the product is Qd = 120 – 0.25P, and the marginal cost of production is $160. a. Determine the optimal number of units to put in a package.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 12SQP

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