Cafe A is a monopoly for lunches served at a school

QUESTION

Cafe A is a monopoly for lunches served at a school. it faces a demand of Q=500-10p. MC=$2/meal. Calculate the profit maximizing quantity, price, profit and deadweight loss for each of the following cases.a) if cafe A can perfectly price discriminateb)if cafe A can set one monopoly pricec)if cafe A uses a two part tariff.

ANSWER:

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