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    Marginal Cost at Ski Resort

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    When a ski resort with some monopoly power is maximizing profit, price is greater than marginal cost. Thus, consumers are willing to pay more for additional lift tickets than the tickets cost to produce. So why does the ski resort not charge a lower price per lift ticket and increase output?

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    Solution Preview

    The ski resort could charge a lower price and increase output. However, the goal of the monopoly is not to maximize output but to maximize its ...

    Solution Summary

    The solution is concise and to the point and explains the concepts very well. The solution is very easy to understand as well. Overall, an excellent response to the question being asked.