Question: Suppose that, due to a dramatic rise in real estate taxes, Neds Beds total fixed cost rises from $300 to $1,300 per day. Use the

Suppose that, due to a dramatic rise in real estate taxes, Ned’s Beds’ total fixed cost rises from $300 to $1,300 per day. Use the data of Table 1 to answer the following:
a. What does the tax hike do to Ned’s MC and MR curves?
b. In the short run, how many beds should Ned produce after the rise in taxes?

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