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24.SmallMomandPopfirms,likeinnercitygrocery stores, sometimes exist even though they do not earn economic profits. How can you explain this? 25. A common name for fixed cost is

24.Small"MomandPopfirms,"likeinnercitygrocery stores, sometimes exist even though they do not earn economic profits. How can you explain this?

25. A common name for fixed cost is "overhead." If youdividefixedcostbythequantityofoutputproduced, you get average fixed cost. Supposed fixed cost is $1,000. What does the average fixed cost curve look like? Use your response to explain what "spreading the overhead" means.

26. How does fixed cost affect marginal cost? Why is this relationship important?

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