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Tombstones are produced in monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total

Tombstones are produced in monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600. From this information, we can tell

a) this producer is making an economic profit of $400

b) this producer should increase production

c) new tombstones firms will want to enter

d) this producer is losing $2000 a week

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