1. The demand curve for Fibonacci Family Pizza, which has the monopoly franchise on the
campus of the State University, is given by
Complete the total revenue and marginal revenue
2. The cost function for the family
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 =