If the Cost of Plaster and Labor Were $13 Per

question 32

Multiple Choice

if the cost of plaster and labor were $13 per gnome and everything else is as in the problem (gnome molds cost $1,000, interest rate is 10%) , what is the lowest price of gnomes at which there would be a positive supply in the long run?

• A)$14.30
• B)$26
• C)$15.20
• D)$13
• E)$15.60

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