Answer to Question #27517 in Economics of Enterprise for Fathimath

Question

All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union. a) If OUM rents space in the Student union to several food provider (such as Subway and MacDonald’s) who then compete with each other, how much rent can OUM collect? b) If OUM rents all the space in the student union to a single food provider who charges monopoly prices, how much rent can OUM collect? c) IF prospective student