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Question
Suppose a perfectly competitive broccoli farm can produce 35 crates at an output level where marginal revenue equals marginal cost. The price per crate of broccoli is $25 and the average total cost is $30. What is the total profit or loss that this farm is earning?
a. $175.00
b. -$175.00
c. $875.00
d. $5
e. -$5
Answer
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