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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:
Price Quantity Total cost (dollars per ride) (rides per month) (dollars per month)
220 0 80
200 1 160
180 2 260
160 3 380
140 4 520
120 5 680
Find Hot Air's profit-maximizing output and price and calculate the firm's economic profit.
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