Tombstones are produced in a monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . Its total variable cost is $2,000 . Its demand curve is downward sloping. Given this information, we know that

a. new firms will enter the market
b. Rolling Stones loses $2,000 a week
c. Rolling Stones makes an economic profit of $400
d. Rolling Stones makes an accounting profit of $100
e. Rolling Stones should increase production because with a downward-sloping demand curve, it will increase its economic profit


B

Economics

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Indicate whether the statement is true or false

Economics