2 (W5LO2). The table Yasmin, and e provides information on the supply schedules

Question

2 (W5LO2). The table Yasmin, and e provides information on the supply schedules of hot air balloon rides by Xavier ck, who are the only sellers in the market. infor Price (dollars per ride) 100 90 Xavier 30 25 20 15 10 Quantity supplied (rides per week) Yasmin 25 20 15 Zack 20 15 10 70 60 50 40 5 Part 1. What is the marginal social cost when the total number of rides is 60? Part 2. When the total number of rides is 60, calculate the number of rides for each seller? Part 3. When the total number of rides is 60, what is the marginal social cost for each firm?

Explanation / Answer

Part 1:

The quantity of rides supplied is 60 when the price is $90 per ride. The marginal social cost of any quantity is equal to the price for which that quantity will be supplied. Thus, when the total number of rides is 60, the marginal social cost equals $90 per ride.

Part 2:

When the total number of rides is 60, Xavier supplies 25 rides, Yasmin supplies 20 rides, and Zack supplies 15 rides.

Part 3:

The marginal cost for each firm is $90

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