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Rodney Sells Gluten-Free Cupcakes at the Farmer's Market

Question 82

Multiple Choice

Rodney sells gluten-free cupcakes at the Farmer's Market. His marginal cost for making another cupcake is $1, and he can sell his cupcakes for $3. An economist would say that each cupcake sold allows Rodney to earn:


A) $3 of total profit.
B) $3 of producer surplus.
C) $2 of producer surplus.
D) $2 of total profit.

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