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A monopoly is considering selling several units of homogeneous product as a single package.
• A typical consumer's demand for the product is Qd = 50-.25P, and the marginal cost of production is $120.
-Determine the optimal number of units to put in a package.
-How much should the firm charge for this package?
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If a monopolist’s marginal revenue from selling another unit is negative, then its total revenue must be __________ and the price elasticity of demand for its product is _______.
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