The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, it:
A. earns an economic profit of $16 per day.
B. earns an economic profit of $64 per day.
C. incurs an economic loss of $16 per day.
D. incurs an economic loss of $64 per day.
Answer: C
Economics
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A decrease in the price of milk (and ingredient of ice cream) will result in a(n):
A) shift of the supply curve of ice cream to the left. B) shift of the supply curve of ice cream to the right. C) lower price of ice cream, and thus an increase in the demand for ice cream. D) increase in the demand for ice cream and a decrease in the supply of milk.
Economics
Economists use a preference map to illustrate that
A) more is better than less. B) preferences are transitive. C) preferences are complete. D) All of the above.
Economics