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Jose's Dry Cleaners operates in a perfectly competitive market. At the point where MC=MR, ATC = $20, AVC = $15, and the price per unit
Jose's Dry Cleaners operates in a perfectly competitive market. At the point where MC=MR, ATC = $20, AVC = $15, and the price per unit is $10. In this situation,
Select one:
a.
Jose's Garage is earning a positive economic profit
b.
Jose's is losing money in the short run, but should continue to operate
c.
the market price will rise in the short run to increase profits
d.
Jose's Garage should shut down immediately
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