Question

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?

   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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Microeconomics: Theory and Applications
Microeconomics: Theory and Applications
Edgar K. Browning,… 12th Edition
Chapter 11, Problem 6 ↓

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A ski resort with monopoly power means it is the only provider or one of the few providers of ski services in a particular area. This gives the resort the ability to influence the price of lift tickets because consumers have limited alternatives.  Show more…

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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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