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 55 45 40 The marginal cost of supplying a soda is $0.75. What price per can will students end up paying in a monopoly market? Please explain your answer.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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

55

45

40

The marginal cost of supplying a soda is $0.75. What price per can will students end up paying in a monopoly market? Please explain your answer.

 

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