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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 Qd = 100 - 0.5P, and the marginal cost of production is $130.
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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Determine if the observation is qualitative or quantitative.
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A firm’s total cost and marginal cost functions are TC = 10 Q2 + 2 Q – 2 ; MC = 20 Q + 2. Asuming that the market price is 42 and that the marginal revenue (MR) is also 42 (it is constant at all output levels), how much output will this firm sell (pr..
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