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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 = 110 - 0.25P, and the marginal cost of production is $160.
a. Determine the optimal number of units to put in a package.
70 units
b. How much should the firm charge for this package?
$
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The accompanying table also graph elucidate how Samantha's preferences for consumption bundles composed of chocolate kisses also licorice drops.
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