Mike sells hot dogs outside of the CCT building with costs C = 0

Subject:EconomicsPrice:4.86 Bought13

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Mike sells hot dogs outside of the CCT building with costs C = 0.025Q2. Professors have demand DP = 60 −20p while students have demand DS =100 − 20p.

a. Provide a fully labelled diagram and supplementary calculations to demonstrate that Mike's

operation will be more profitable with ordinary price discrimination than it would be operating as a

single-price monopoly.

b. The efficiency loss for OPD is equal to _______________ dollars.