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Suppose that the total fixed cost for a guitar manufacturer is $90. The marginal cost of the first guitar produced is $80 and decreases
Suppose that the total fixed cost for a guitar manufacturer is $90. The marginal cost of the first guitar produced is $80 and decreases by $10 for the next three guitars produced. Thereafter, the marginal cost increases by $10 for each successive guitar. Refer to the information above to answer this question. If the manufacturer can sell her guitars for $70, what will be her profit or loss at the optimal output? Select one: OA. A loss of $60. B. She will break even. O C. A loss of $50. OD. A loss of $90. E. A profit of $50.
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