The cost of producing a tube of tooth paste is $0.05.If the market for tooth paste is monopolistically competitive,a manufacturer who charges $0.05 for each bottle will ________.

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In a monopolistically competitive market, firms can earn zero economic profits in the short run if they are able to cover all their costs, including the average total cost. Charging $0.05, which is the cost of production, implies that the firm is covering its variable costs and possibly some or all of its fixed costs, depending on the price relative to the average total cost. This scenario does not automatically imply a loss, shutdown, or exit, especially without information on other costs or the price relative to the average total cost.

The Cost of Producing a Tube of Tooth Paste Is