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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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