The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a monopoly producer of pillows stuffed with parrot feathers
When Paul maximizes his profit, Paul produces ________ pillows per hour, and if the market was perfectly competitive, ________ pillows per hour would be produced. A) 0; 4,000
B) 3,000; 4,000
C) 4,000; 4,000
D) 3,000; 3,000
E) 0; 3,000
B
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A tariff is defined as:
a. a limit imposed on the quantity of imports. b. a tax collected before exporting a product. c. a discount given on an imported product. d. a tax imposed on an imported product.
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. raise the price consumers pay from $25 to $30. B. lower the price sellers keep after paying the tax from $25 to $20. C. lower the price consumers pay from $25 to $15. D. raise the price sellers keep after paying the tax from $25 to $30.