Toby Operates a Small Deli Downtown

Multiple Choice

Toby operates a small deli downtown.The deli industry is monopolistically competitive.Toby tells you he is producing the quantity that minimizes his average total cost.Assuming that Toby is maximizing profits, you know Toby's:

A) marginal cost is less than his average total cost.
B) marginal cost is less than his marginal revenue.
C) price equals his average total cost.
D) price is more than his average total cost.