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Darlene Runs a Fruit and Vegetable Stand in a Medium-Sized

Question 52

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Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands.Her weekly total revenue equals $2,000.Her weekly total cost of running the stand equals $3,500,consisting of $2,500 of variable costs and $1,000 of fixed costs.An economist would likely advise Darlene to:


A) shut down as quickly as possible in order to minimize her losses.
B) keep the stand open because it is generating an economic profit.
C) keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs.
D) keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.

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