Tombstones are produced in a monopolistic competitive market. One ...

[vinney12]

Tombstones are produced in a 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. new tombstone firms will want to enter.
  b. this producer is losing 2,000 a week.
  c. this producer is making an economic profit of 400.
  d. this producer is setting MR = MC.
  e. this producer should increase production.

Question 2

A budget line represents all the combinations of two good a consumer can buy with a given amount of money and fixed prices for the goods.
 a. True
  b. False
  Indicate whether the statement is true or false

[zoeyesther]

Answer to Question 1

b

Answer to Question 2

True

[vinney12]

Thanks for the timely response, appreciate it

[kalskdjl1212]

Excellent