tito runs a taco truck, selling street tacos in a perfectly competitive, constant cost undustry. the fixed costs of the taco truck are $250 per day. the marginal costs are $4 a taco and those costs do not change with the number of Tacos sold. Tacos sell for $3 each. for the past week Tito has sold 100 tacos every day. Tito asks your advice for what he should do with the taco truck.

"Everything sounds great. Enjoy your profits!" "What a terrible business! You should sell your taco truck immediately and exit the taco business." "Raise your prices." "Things are tough but they could be worse. Stick with it and hopefully business will pick up before your truck payment is due." "You're earning what economists call a normal profit. You should be happy about that, because economists are naturally cynical and pessimistic."