Multiple Choice
The cost of producing each bottle of a certain brand of shampoo is $0.25.If the market for shampoo is monopolistically competitive and the demand for shampoo is inelastic,a manufacturer who charges $0.35 for each bottle will ________.
A) shut down production in the short run
B) exit the industry in the long run
C) earn an economic profit of $0.10 per bottle
D) earn a total revenue of $0.10 per bottle
Correct Answer:
Verified
Correct Answer:
Verified
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