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The Accompanying Graph Shows the Cost Curves for Moe's Mushroom

Question 26

Multiple Choice

The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will: A) earn zero profit. B) earn negative profit (a loss) . C) earn positive profit. D) shut down. If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will:


A) earn zero profit.
B) earn negative profit (a loss) .
C) earn positive profit.
D) shut down.

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