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Question
Caskets are produced in a monopolistic competitive market. One producer, Final Boxes, sells 20 caskets a week at a price of $550 each. Its average total cost is $600. From this information, we know that
a. new casket firms will want to enter.
b. this producer is losing $1,000 a week.
c. this producer is making an economic profit of $500.
d. this producer is setting marginal revenue equals marginal cost.
e. this producer should increase production.
Answer
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Related questions
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