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Business, 26.08.2019 16:10 cschellfamily

Your college is considering renting space in the student union to one or two commercial textbook stores. the rent the college can charge per square foot of space depends on the profit (before rent) of the firms and hence on whether there is a monopoly or a duopoly. which number of stores is better for the college in terms of rent? which is better for students? why? a. a duopoly and a monopoly would earn the same amount of profit, being of equal benefit to the college in terms of rent, but a duopoly would generate more consumer surplus, benefiting students. b. a monopoly would earn more profit, benefiting the college with more rent, and a monopoly would generate more consumer surplus, benefiting students. c. a duopoly would earn more profit, benefiting the college with more rent, and a duopoly would generate more consumer surplus, benefiting students. d. a monopoly would earn more profit, benefiting the college with more rent, and a monopoly would generate more deadweight loss, benefiting students. e. a monopoly would earn more profit, benefiting the college with more rent, but a duopoly would generate more consumer surplus, benefiting students.

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