Price and cost (dollars per pillow)1009080S=MC706050403020MR101,000 2,000 3,000 4,000 5,000Quantity (pillows per hour) 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 price isper pillow and the marginal cost isper pillow.O A. $100; $40O B. $60; $60OC. $60; $40O D. $70; $60O E. $70; $40

A monopoly market only has one seller selling a unique good. As being the sole seller, there is no…

Answered: 10 90 80 S=MC 70 60 50 40 30 - 20 MR 10…

Business

Economics

10 90 80 S=MC 70 60 50 40 30 - 20 MR 10 1,000 2,000 3,000 4,000 5,000 Quantity (pillows per hour)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Price and cost (dollars per pillow)
100
90
80
S=MC
70
60
50
40
30
20
MR
10
1,000 2,000 3,000 4,000 5,000
Quantity (pillows per hour)

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 price is
per pillow and the marginal cost is
per pillow.
O A. $100; $40
O B. $60; $60
OC. $60; $40
O D. $70; $60
O E. $70; $40

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