Economics Homework Help. 1. Your company and your competitors company play the game like the following table twice. Suppose your strategy
1. Your company and your competitors company play the game like the following table twice. Suppose your strategy
is to set high prices in each period and your competitors have never charged low prices in the previous period. How much your company will produce assuming the interest rate is zero?
2. As a manager of a chicken restaurant that produces a marginal cost of $ 6 per fried chicken menu. The chicken restaurant is a local monopoly company near the college (there are no other restaurants near the college). During the day only students eat at the restaurant. In the evening, college employees eat there. If a student has an elasticity of demand of fried chicken at -4 and college employees have an elasticity of demand of -2, What is the pricing policy to maximize profits?
Please explain the answer, Thankyou so much! much appreciated