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-Fresh Taste, Inc

Question 183

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-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's economic profit is A) $16,000 per day. B) zero, that is, it earns only a normal profit C) $8,000 per day. D) $6,000 per day.
-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's economic profit is


A) $16,000 per day.
B) zero, that is, it earns only a normal profit
C) $8,000 per day.
D) $6,000 per day.

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