Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Now suppose that the government places a fixed tax on Hot Air's profit of $30 a month. Calculate Hot Air's new profit-maximizing output and price. ... When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the profit-maximizing price of a ride is >>> Answer to 1 decimal place. When the government places a fixed tax on Hot Air's profit of $30 a month, the profit-maximizing output and the profit-maximizing price Price (dollars per ride) 220 200 180 160 140 120 Quantity (rides per month) 012345 Total cost (dollars per month) 80 250 440 650 880 1130

Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Now suppose that the government places a fixed tax on Hot Air's profit of $30 a month. Calculate Hot Air's new profit-maximizing output and price. ... When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the profit-maximizing price of a ride is >>> Answer to 1 decimal place. When the government places a fixed tax on Hot Air's profit of $30 a month, the profit-maximizing output and the profit-maximizing price Price (dollars per ride) 220 200 180 160 140 120 Quantity (rides per month) 012345 Total cost (dollars per month) 80 250 440 650 880 1130

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.1P

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