The Cost of Producing a Tube of Tooth Paste Is

question 237

Multiple Choice

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 ________.

• A) shut down production in the short run
• B) exit the industry in the long run
• C) incur a loss in the short run
• D) earn zero economic profits in the short run

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