A private school has demand for enrolling students at Q=100- 10P, where price is tuition and Q is student enrollment (for a year). Marginal cost to enroll a student is MC = 10. It effectively acts like a monopoly in setting its tuition price and quantity. The school has a pricing scheme where they set a price for tuition (P) plus a flat enrollment/registration fee. What is the profit maximizing Q, price for tuition (P), and the enrollment/registration fee? Use a graph to explain your work and show your math answers

A private school has demand for enrolling students at Q=100- 10P, where price is tuition and Q is student enrollment (for a year). Marginal cost to enroll a student is MC = 10. It effectively acts like a monopoly in setting its tuition price and quantity. The school has a pricing scheme where they set a price for tuition (P) plus a flat enrollment/registration fee. What is the profit maximizing Q, price for tuition (P), and the enrollment/registration fee? Use a graph to explain your work and show your math answers

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 4E

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