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You Sell Hot Dogs at a Baseball Game for $3

Question 45

Multiple Choice

You sell hot dogs at a baseball game for $3.25 each. You have 100 hot dogs to sell at an average cost to you of $2.00 each. The marginal cost at q=100 is $1.95. Assume you can always sell out of hot dogs. Will increasing the number of hotdogs you have to sell increase or decrease your profit?


A) increase
B) decrease

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