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Jae Sells Corn in a Perfectly Competitive Market

Question 105

Multiple Choice

Jae sells corn in a perfectly competitive market. The market price for a bushel of corn is $6. Jean has 600 bushels of corn to sell. If her total variable cost is $3,300 and her total fixed cost is $300, then Jae


A) is earning a positive economic profit.
B) is earning a normal profit.
C) is minimizing her losses.
D) should raise her price.

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