A monopoly is considering selling several units of a


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 = 120 - 0.25P, and the marginal cost of production is $160.

If your cost of producing bran muffins is C(Q) = 4.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.

Instruction: Round your answer for the optimal package price to two decimal places.

a. Determine the optimal number of units to put in a package.

units

b. How much should the firm charge for this package?

$

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A monopoly is considering selling several units of a
Reference No:- TGS01085270

Expected delivery within 24 Hours