Use the Information Below to Answer the Following Questions

Use the information below to answer the following questions.
Fact 13.3.3
Suppose that Roots' marginal cost of a jacket is a constant $125.00 and the total fixed cost at one of its stores is $1,500 a day.This store sells 20 jackets a day,which is its profit-maximizing number of jackets.Then the stores nearby start to advertise their jackets.The Roots store now spends $2,000 a day advertising its jackets,and its profit-maximizing number of jackets sold jumps to 70 a day.
-Refer to Fact 13.3.3.In the long run,Roots' economic profit is

A) positive.
B) negative.
C) zero.
D) greater than the economic profit of its competitors.
E) less than the economic profit of its competitors.

Correct Answer:

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