Q2: (10%) If the on-campus demand for soda is as follows: Price (per can) $0.25
ID: 1193159 • Letter: Q
Question
Q2: (10%)
If the on-campus demand for soda is as follows:
Price (per can)
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
Quantity demanded (per day)
100
90
80
70
60
50
40
The marginal cost of supplying a soda is $0.50. What price per can will students end up paying in
A perfectly competitive market? (5%)
A monopoly market? (10%)
I have charted the demand, but need help charting the MC and MR. I know how to chart MC if I have a schedule, but saying the MC of supplying a soda is $.50 is throwing me off.
Price (per can)
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
Quantity demanded (per day)
100
90
80
70
60
50
40
Explanation / Answer
under perfectly competitive market, the students would be paying a price equivalent to MC ie $0.5
under monoploy market price charged would be the one which satisfies MR=MC.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.