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Madame Defarge sells a plate of either gumbo or jambalaya for $ 6 . The food is made in the morning at her nearby restaurant,

Madame Defarge sells a plate of either gumbo or jambalaya for $6. The food is made in the morning at her nearby restaurant, when the kitchen is
otherwise unoccupied. Her crew of three, each of whom earns $14 per hour, takes 2.5 hours to make the 110 meals required by Madame Defarge. In
creating these meals, they use ingredients equal to $110.
Madame Defarge hires another worker to load her cart with food and sell it during the lunch hours. That worker costs $8 per hour and typically sells
out the entire cart of 110 meals in 2 hours. The cart is rented for $100 per 5-day week. (The carts are not in operation on the weekends, when
Madame Defarge is too busy at her restaurant.)
What factors make this a monopolistically competitive market? (Mark all that apply.)
A. There are many types of food from which students can choose.
B. Madame Defarge sells out the entire cart in 2 hours.
C. Madame Defarge is one of many vendors.
D. Madame Defarge only operates on specific days.
E. There are no licensing fees for food-cart vendors.
Madame Defarge's profit per meal is equal to $.(Enter your response rounded to the nearest penny.)
What would you expect to see happen in this business?
A. Firms would enter this market due to positive economic profit in the short run.
B. Firms would exit this market due to negative economic profit in the short run.
C. Firms would enter this market due to positive economic profit in the long run.
D. Firms would exit this market due to negative economic profit in the short run.
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