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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 = 40 - 0.5P, and the marginal cost of production is $50.
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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Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantages were used in your simulation.
The filling variance for boxes of cereal is designed to be .02 or less. A sample of 41 boxes of cereal shows a sample standard deviation of .16 ounces. Use ? = .05 to determine whether the variance in the cereal box fillings is exceeding the design s..
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