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I need help with B and C
Suppose that the Texas Ski Company has a monopoly on skiing in Texas due to a special technology that allows it to make snow at all temperatures. Demand is linear (a straight line that is downward sloping). At a price of zero, 1,000 lift tickets are demanded. When the price reaches $200, the quantity of lift tickets demanded drops to zero. The marginal revenue curve intersects the vertical axis at $200, and intersects the horizontal axis at 500 tickets. Marginal cost is constant (straight line) at $40 per ticket. 5. A. Draw a graph showing demand, marginal revenue, and marginal cost, and show the monopoly profit-maximizing output and price on your graph. Label these points Q* and P B. What is the price if Texas Ski prices like a competitive firm? C. Label the deadweight loss on your graph assuming the firm prices at the monopoly level.
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