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SVETLANKA909090 [29]
3 years ago
8

Zoe's Bakery operates in a perfectly competitive industry. Suppose that when the market price is $5, the profit-maximizing outpu

t level of pastries is 150 units, with average total cost of $4, and average variable cost of $3. From this we know Zoe's marginal cost is ______, and Zoe's short-run profits are ______.
A. $5; $300.
B. $1; $300.
C. $1; $150.
D. $5; $150.
Business
1 answer:
Katena32 [7]3 years ago
7 0

Answer:

(D) $5; $150

Explanation:

MR=MC, marginal cost is the market price, which is 5$.

And she is making a dollar per based on the average total cost;

so selling 150 =$1 ×150

= $150 .

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Answer:

36%

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Step 1

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Step 2

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Step 3

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Step 4

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