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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 = 60 - 0.25P, and the marginal cost of production is $80.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
q.consider a market with demand q 10 - p. currently there is an incumbent in the market with capacity k. there is a
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The cross-price elasticity between mobile phones and ear buds is estimated to be 2.5. What do you predict will happen to ear bud demand (sales) and price, other things being equal, if mobile phone prices fall?
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Municipal bonds might pay a risk premium over the default-free bond yield because
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