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A monopoly is considering selling several units of a homogeneous product as a single package. A typical customer’s demand for the product is Qd = 120 - 0.5P, and the marginal cost of production is $150.
1. Decide the optimal number of units to put in a package.
2. How much must the firm charge for this package?
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Relates to content and skills covered in Week 7 of the Weekly Study Program, Chapter 32 of Ganset al. (2012). Refer here to the comments given for Week 7 for assistance in answering this question.
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