All Oxbridge University students are identical, and they are all indifferent between attending Oxbridge and the next best alternative. Students eat at the student union.
a. If Oxbridge rents space in the student union to several food providers (such as Subway and McDonald's) who then compete with each other, how much rent can Oxbridge collect? (Illustrate your answer with a graph, showing the quantity of food bought on the horizontal axis and the price of food on the vertical.)
b. If Oxbridge rents all the space in the student union to a single food provider who charges monopoly prices, how much rent can Oxbridge collect?
c. If prospective students are aware of the dining situation on campus, how would the decision to go with a monopoly food provider affect the amount of tuition the university can collect?
d. In order to maximize its profits, should Oxbridge rent to a monopolist or to several competitors?