Tombstones are produced in a competitive price-searcher market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600. From this information, we can conclude

Question

Quizplus · Accepted Answer

Rolling Stones is selling each tombstone for $500 but the average total cost is $600, resulting in a loss of $100 per tombstone. Selling 20 tombstones a week results in a total loss of $2,000 (20 x $100).

Tombstones Are Produced in a Competitive Price-Searcher Market