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monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 100 - 0.25P, and the marginal cost of production is $140.a. Determine the optimal number of units to put in a package. 65 unitsb. How much should the firm charge for this package? $ 140

Respuesta :

Answer:

a)  Q = 65 units

b) P =$140

Explanation:

a) Marginal cost = 140

At equilibrium: P = MC

Q = 100 - 0.25P

0.25P = 100 - Q

P = 400 - 4Q

So, 400 - 4Q = 140

260 = 4Q

Q = 65 units

b) P = 400 - 4Q

        = 400 - 4(65)

        = 400 - 260

        = $ 140

P = $ 140

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