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1. The demand curve for Fibonacci Family Pizza, which has the monopoly franchise on the campus of the State University, is given by Price Quantity
1. The demand curve for Fibonacci Family Pizza, which has the monopoly franchise on the campus of the State University, is given by Price Quantity Demanded Total Revenue Marginal Revenue 20 0 18 2 16 4 14 6 12 8 10 10 10 0 2. The cost function for the family business is: Quantity 0 2 Total Cost 12 28 4 36 6 56 84 4 10 116 8 10 Marginal Cost Average Cost Complete the marginal cost and average cost columns. 3. How much output should the Fibonaccis produce? 4. What price should they charge? 5. What profit will they earn at that price and output? 6. On a piece of graph paper or in MS EXCEL plot the demand curve data, the marginal revenue data and the MC curve data. Use the information in the graph and a bit of interpolation to compute an approximation of the deadweight loss attributable to Finonacci's market power. DWL =
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