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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 Q^d = 120 - 0.25P, and the marginal cost of production is $160.

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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91374986

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