Ricky's Donuts sells premium donuts. Premium donuts have toppings. The demand for premium (PR) donuts is: PPR = 5.70 -0.45QPR The marginal cost for each is: MCPR = 0.20 Now Ricky starts selling cupcakes. This creates an opportunity cost of 0.10 per premium donut as those toppings cannot be used for cupcakes. Which of the following statements is true? With the opportunity cost, more premium donuts will be produced The opportunity cost will increase fixed costs The opportunity cost will increase profit With the opportunity cost, Ricky should produce 9 premium donuts The opportunity cost will change the minimum average cost

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