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Now assume that the monopolist hires one ofthe economics students to help him determine the relationship between the demands for espresso and orange juice [so
Now assume that the monopolist hires one ofthe economics students to help him determine the relationship between the demands for espresso and orange juice [so he can stop being myopic). The analysis shows that the demand for espresso coffee would be Ge: l406Pe+Pj. While the demand for orange juice would be 0]: 1208Pj+Pe. a} Find the quantity and price of each good that the monopolist selling both products would produce (he is no longer myopic] b} Given these results, would the monopolist start selling it? Explain c] Given these results, what does the Rector have to do to ensure that the cafeteria sells orange juice? Explain
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