I need some micro-econs help!! im dumb?
Varsity Catering Company is licensed to manage the cafeterias for all colleges in the state of Unitas. There are only two colleges (Unitas East and Unitas West) – both of which offer equal quality, scope, and cost of education – therefore, student enrolment is evenly distributed between the two colleges. The only difference between the colleges are their meal plans.
The meal plan for each college is as follows:
Unitas East offers a meal plan that allows students eat as much as they like for $700 per semester. The average student there eats 100 kg of food per semester.
In Unitas West, students are required to purchase a set of meal coupons for $700 which entitles them to eat 100 kg of food per semester. If a student eats more than 100 kg, he/she pays $7 for each additional kg; if the student eats less, he/she will be refunded $7 per kg.
If all college students have the same preference for food, for which college would Varsity Catering Company have to prepare more food, on average? Explain your answer with reference to a principle of economics.