Your consulting firm was just granted an exclusive contract for Vanda-Laye Corporation. You now must decide your pricing policy. The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist.
Tasks:
Analyze what a monopolist is and the effects it could have on the consulting firm.
Evaluate if any antitrust policies need to be put into place. How will your pricing policy be justified?
Explain the implications of increasing the price you will charge Vanda-Laye Corporation verses what it was previously charged.
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