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the profit maximizing output does what? and the profit maximizing price does what? Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2

the profit maximizing output does what? and the profit maximizing price does what?

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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. Price Quantity Total cost (dollars (rides (dollars Now suppose that the government places a fixed tax on Hot Air's profit of $25 a month. per ride) per month) per month) Calculate Hot Air's new profit-maximizing output and price. 150 50 140 175 When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the 130 310 profit-maximizing price of a ride is $. 120 455 110 610 >>> Answer to 1 decimal place. 100 775 When the government places a fixed tax on Hot Air's profit of $25 a month, the profit-maximizing output and the profit-maximizing price does not change decreases increases

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