What are the new profit-maximizing quantity and price

Assignment Help Microeconomics
Reference no: EM131612203

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

If instead of taxing Hot Air's profit, the government imposes a sales tax on balloon rides of $30 a ride, what are the new profit-maximizing quantity, price, and economic profit?

Reference no: EM131612203

Questions Cloud

Demonstrate your knowledge by using concepts presented : Additionally, you must comment on at least one of your peers' blogs. Demonstrate your knowledge by using concepts presented.
Government imposes a tax on hot air profit : Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule.
Compare the p-value to alpha : The company statistician tells you that the p-value of the test is 0.0496. Compare the test statistic to the critical value. Compare the p-value to alpha.
What incentives exist for participating in the program : What incentives exist for participating in the program? How are these leadership competencies acquired during the program?
What are the new profit-maximizing quantity and price : 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.
What common patterns of behavior and methods : What common patterns of behavior and methods can you identify across regions and movements
Why are french wines able to command a price premium : Why are French wines able to command a price premium in export markets? What are the competitive advantages and disadvantages of the Old World vineyards?
Security has an expected rate of return : A security has an expected rate of return of .13 and a beta of 2.1.
What was average nominal risk premium on crash-n-burn stock : What was the average real return on Crash-n-Burn’s stock? What was the average nominal risk premium on Crash-n-Burn’s stock?

Reviews

Write a Review

Microeconomics Questions & Answers

  The household first starts up at x=10

Like in the notes assume the household first starts up at x=10 where the rent is $0.30 per square foot. The household choses an apartment with 1,000 square feet. However and in contrast to the notes, the preference (=utility curves) are now not..

  Differences between horizontal, vertical and conglomerate

Discuss the differences between horizontal, vertical and conglomerate mergers and how those differ from a joint venture.

  Draw a long-run supply curve for haircutting in your city

Draw a long-run supply curve for haircutting in your city - Draw demand and supply graphs to show the short-run and long-run effects

  What is the aggregate marginal revenue curve

Find the deadweight loss and consumer surplus in the market - find the profit-maximizing quantity and price for Sky Sports as well as its profit.

  Which is an example of the aggregate production function

Which is an example of the aggregate production function, Y = F(K, N), that exhibits constant returns to scale? The capital-labor ratio (K/N) in Country y is. i

  What price should you charge in the short run

The price in your market is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What price should you charge in the short run?

  How has globalization impacted apples production of iphone

Using the article, discuss the factors that played a role in Apple's decision to locate to China and how has globalization impacted Apple's production of the iPhone? Make sure to use concepts discussed in class.

  What interest rate would a firm have to promise debt

What interest rate would a firm have to promise debt holders to make an investor indifferent between holding debt or shares in the company? How does the return to equity owners change with the proportion of the investment that is provided by debt? Th..

  Expected value of lifetime earnings

What is the expected value of lifetime earnings in the middle period of life? Given this number, what is the present discounted value of the expected lifetime labor earnings?

  Suppose that the inverse demand function

Suppose that the inverse demand function is given by P=50-Q, and cost function of a firm is C=5qi: (1) For a competitive industry, find the market price, market output and the profit at the equilibrium.

  Consider the advantages and disadvantages of the european

consider the advantages and disadvantages of the european union adopting a common currency and determine if this move

  The city government is considering two tax proposals

Which of the following curves—average fixed cost, average variable cost, average total cost, and marginal cost—would shift as a result of the lump-sum tax? Why? Show this in a graph. Label the graph as precisely as possible.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd