
-Fresh Taste, Inc. produces organic breakfast cereals. The market for breakfast cereals is monopolistically competitive. The figure above shows the demand curve that Fresh Taste faces (D) , the company's marginal revenue curve (MR) , its marginal cost curve (MC) , and its average total cost curve (ATC) .
Fresh Taste produces _______ thousand boxes of cereal per day and sets a price of _______ a box.
A) 8; $1.00
B) 8; $3.00
C) 12; between $3.00 and $2.01
D) 12; $2.00
Correct Answer:
Verified
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