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The market in which Roots sells its jackets is monopolistic competition. Roots' ...
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The market in which Roots sells its jackets is monopolistic competition. Roots' marginal cost of a jacket is $125 and its total fixed cost is $1,500 a day. Roots sells 20 jackets a day, but now it decides to spend $2,000 a day to advertise its jackets. If the advertising is successful, it will sell 70 jackets a day. What is the average total cost of a Roots' jacket?
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