Is it always profitable for andrea to fill the garage to


Andrea owns the only parking garage in town (i.e., she's a monopolist). Suppose that the marginal cost of letting an additional car in the garage is zero, and that the demand for parking in the garage is known. Show how Andrea determines the profit maximizing quantity of cars to allow in, and the price to charge. Is it always profitable for Andrea to fill the garage to capacity? Why or why not? Assume that Andrea does not practice price discrimination.

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Business Economics: Is it always profitable for andrea to fill the garage to
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