Refer to the Information Provided in Figure 15

Multiple Choice

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. At the profit-maximizing output in the short run, the firm ________ of $46.

A) has an average total cost
B) earns a profit
C) should set a price
D) has an average variable cost