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...

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?