Caskets are produced in a monopolistic competitive market. One producer, Final Boxes, sells 20 caskets a week at a price of $550 each. Its average total cost is $600. From this information, we know that:
- new casket firms will want to enter.
- this producer is losing $1,000 a week.
- this producer is making an economic profit of $500.
- this producer is setting marginal revenue = marginal cost.