Hot Air Balloon Rides is a? single-price monopoly. Columns 1 and 2 of the table
ID: 1207740 • Letter: H
Question
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
?$50 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---- a month and the?profit-maximizing price of a ride is $---b----
?
Quantity (rides per ride)per month)per month) Price (dollars 7 Total cost (dollars 220 200 180 160 140 120 80 160 280 440 640 880 2Explanation / Answer
It is P= 200 and Q= 1
It is P= 160 and 4 .
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