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Cecilia's Café Is in a Competitive Price-Searcher Market

Question 169

Multiple Choice

Cecilia's Café is in a competitive price-searcher market. Cecilia's is currently producing where average total cost is at its minimum, and Cecilia's is earning a positive economic profit. In the long run we would expect Cecilia's output to


A) decrease and average total cost to be higher.
B) decrease and average total cost to be lower.
C) remain unchanged as Cecilia's is doing the best it can.
D) increase and average total costs to be lower.

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