Suppose that the Hot Dog House can produce hotdogs at a constant cost of $0.25 each. If the Hot Dog House sells hotdogs for $0.50 each, then the Hot Dog House
A) receives a producer surplus.
B) will raise the price of hot dogs.
C) will allow consumers to receive a consumer surplus.
D) has no producer surplus.
E) has an opportunity cost of $0.50 a hot dog.
Correct Answer:
Verified
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