The monopolist provider of food services at a university has the following demand curve and total...
The monopolist provider of food services at a university has the following demand curve and total cost function for semester-long meal plans:
TC = 4Q2 + 25000
P = 2000 - 4Q
A. What are the profit maximizing price and level of output for the food service company? Determine any profits.
B. The university has decided to charge the company a fee for the right to serve food on campus. What is the maximum amount the company is willing to pay for the rights to continue their monopoly for one semester?
C. If the company is charged a fee to continue their monopoly on campus food services, what happens to the price of a meal plan and the number of meal plans sold?
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The monopolist provider of food services at a university has the
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Consider a monopolist with the following demand curve: P = 390-29. The monopolist faces MCM = ACM = 30 a) Solve the profit maximizing level of monopoly output, price, and profits. b) Suppose a potential entrant is considering entering, but the monopolist has a cost advantage. The potential entrant faces costs MCPE = ACPE = 40. Assuming the monopolist continues to profit-maximize, solve for the residual demand curve for the entrant. Assume the potential entrant follows the Cournot assumption about...
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A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its...
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