The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers
When Paul maximizes his profit, the difference between marginal cost and price is A) $0.
B) $40.
C) $60.
D) $30.
E) $20.
D
Economics
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If a firm is experiencing constant returns to scale, then the long-run average cost curve is
A) falling. B) rising. C) horizontal. D) shifting
Economics
Which concept springs to mind when thinking of the classical model?
a. Inflation. b. Population growth. c. Markets clear. d. The microeconomy. e. Money supply.
Economics