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Suppose Bella's Belt Barn operates in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of

Suppose Bella's Belt Barn operates in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production, Bella's average fixed cost of producing belts is $2.40, average variable cost is $21.30, and marginal cost is $23.70. At this moment, Bella is earning _____ economic profits. Over time, everything else held constant, the price of belts in this market will _____.

Select one:

A.positive; increase

B.negative; decrease

C.zero; remain unchanged

D.positive; decrease

E.negative; increase

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