The market for watermelons in Alabama is perfectly competitive.A watermelon producer making zero economic profit could make an economic profit if the

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If the average total cost of selling watermelons falls, the producer's profit will increase as their costs have decreased. This could happen if the producer finds a more efficient way to grow or sell their watermelons, or if input prices decrease. The other options would either maintain the producer's zero economic profit or increase costs, making it less profitable to sell watermelons.

The Market for Watermelons in Alabama Is Perfectly Competitive