A monopoly is considering several units of a homogeneous


A monopoly is considering several units of a homogeneous product as a single package. A typical consumer’s demand for the product is

P = 50 – 2.5Q

and your cost function is C = 20Q.

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

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

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Business Economics: A monopoly is considering several units of a homogeneous
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