**Question #7: Economic Analysis of Pawkeepsie Groomers**Lenora and Uma own a dog-grooming business in upstate New York, called Pawkeepsie Groomers. The dog-grooming service market is perfectly competitive. Pawkeepsie Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average variable cost (AVC) at $14 and average total cost (ATC) at $22. Pawkeepsie Groomers will make positive economic profits if the market price is:a. $14.b. between $14 and $22.c. below $14.d. $22.e. above $22.

In a perfectly competitive market, all firms are price takers and do not have market power due to…

Answered: #7. Lenora and Uma own a dog-grooming…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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