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 a 100-0.5P, and the marginal cost of production is $130. a. Determine the optimal number of units to put in a package. 17.5 units b. How much should the firm charge for this package? $ 165
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 a 100-0.5P, and the marginal cost of production is $130. a. Determine the optimal number of units to put in a package. 17.5 units b. How much should the firm charge for this package? $ 165
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 1CQQ
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