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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 = 90 - 0.25P, and the marginal cost of production is $120.
a. Determine the optimal number of units to put in a package.
b. How much should the firm charge for this package?
If none of the high-cost firms makes a positive profit, how large is n. Elucidate how much profit do the low-cost firms make.
What is the multiplier in this model? The d is suppose to be a little below the Y.
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Using the Lagrangean Multiplier method, determine how should the hardwood be allocated between the two lines of product so that total profit can be maximized. Also calculate the optimal amounts of Y and Z and total profit from each product line.
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Which of the following is NOT a cost-effectiveness analysis measure of the outcomes of medical interventions?
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