Costume jewelry is produced in a monopolistically competitive ...

[abern]

Costume jewelry is produced in a monopolistically competitive market. One producer finds that MR = MC = 3 when output is 700 necklaces. An economist studying this information can conclude that:
 a. the producer is charging a price of 3.
  b. economic profit is 2,100.
  c. the producer charges a price greater than 3.
  d. new firms will want to enter.
  e. this producer should produce more than 700 necklaces.

Question 2

A budget line represents all combinations of bundles of two goods that give a consumer equal total utility.
 a. True
  b. False
  Indicate whether the statement is true or false

[Eazy416]

Answer to Question 1

c

Answer to Question 2

False