In exchange for a share of the revenues earned on campus, state u has granted cheapfizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. prior to the deal, a 12-ounce can of cheapfizz sold for 75 cents. after the deal you would expect a 12-ounce can of cheapfizz to sell for:

a. 75 cents because that is the market price.
b. less than 75 cents because cheapfizz will have greater volume and so can lower its price.
c. more than 75 cents because the demand curve for cheapfizz soda will shift to the left.
d. more than 75 cents because cheapfizz is the only company that can sell soda on campus.

The correct answer is option D.

Explanation:

The price of a 12 ounce can of CheapFizz is 75 cents.

After a deal with State U, CheapFizz gets exclusive rights to sell soft drink on the campus.

This makes CheapFizz a monopoly firm.

A monopoly firm is a price maker and produces at the point where the marginal cost is equal to marginal revenue. At this point the output level is lower than socially optimal and the price level is higher than socially optimal.

This means that the price of CheapFizz cans will be more than 75 cents after the deal.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

the third answer is correct.